A control is a procedure that a business adopts to mitigate a risk. A control may be preventative, in that it stops bad things from happening; detective, in that it notices when bad things happen and alerts the right people; or corrective, in that it not only detects the bad thing, but automatically fixes it. Preventative controls Includes: Authorisation Access controls Segregation of duties Validation checks Training Detective controls Includes: ...
Gharar is a fundamental concept in Islamic finance, derived from the Arabic word for uncertainty, ambiguity, deception or risk. It is often translated into English as excessive risk, hazard or speculation. In Islamic finance, Gharar refers to transactions where the terms or subject matter are uncertain, leading to a significant imbalance of information - information assymetry - or a high probability of loss for one or more parties. This includes contracts with unknown outcomes, poorly defined specifications, or contingencies that are difficult or impossible to quantify or assess. ...
Further reading Operational risk - eba Operational risk - PRA Operational Risk - HSBC Operational Risk Management - PwC Australia Operational Risk and Operational Resilience - PwC UK (PDF)
The term Risk Intelligence initially referred to the act of gathering intelligence on counterparts, for example when providing a loan, in order to enable better decision making. Over time, the term has evolved to encompass broader concepts related to understanding and managing risk, and its modern business usage has evolved as a term that indicates a pursuit for better risk management through the use of software, data and human analysis. ...
The first line of defence in an organisation is responsible for owning and managing risks. This includes implementing and maintaining effective internal controls, and executing day-to-day operational activities to ensure compliance with policies and procedures. Related pages Three lines of defence Second line of defence