OpRisk Capital

Operational Risk Capital is the financial amount that a bank or financial institution sets aside to cover potential losses from failures in internal processes, people, or systems—or from external events like fraud or disasters. It's a safeguard to ensure the institution remains stable and can absorb unexpected problems that could impact its operations. This capital acts as a buffer, helping the organization continue functioning smoothly and meet regulatory requirements, despite risks arising from day-to-day functioning issues or unforeseen disruptions.