August 14, 2023

We are happy to launch Understanding Operational Risks, an e-mailer series, to create awareness about operational risks in our organisation. Simply put, operational risk is the risk of loss resulting from many normal aspects of business. Operational risk is present in every department of Sharekhan and all staff are exposed to it. It is the responsibility of every staff to report any operational risk incident, historical or present, detected by him/her to the Operational Permanent Control (OPC) team. But in order to report, one must first understand what operational risk is, right? Well, after reading all the mailers of this series, you will be able to not only understand but also identify operational risks and help prevent them. Let us start with historical incidents.

In the world of operational risk management, a historical incident has four characteristics:

• It is a real event that has actually happened.
• It has an identifiable time and location.
• It is the result of inadequacy or failure of internal processes or external events.
• It has led, may lead or could have led to a loss, gain or opportunity cost.

If you recall any historical incident that took place in Sharekhan, please report it to the OPC department immediately at opc@sharekhan.com.

Note: You must report a historical incident within five days of detection.