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It is the risk that results in operational losses emerges from the loops incurred in operations; it could also be the contribution of fraud, management, lack of service quality, technological lagging and many more internal factors.

6.2.A) Heat Map

Modern era is highly sophisticated, dangerous fraud schemes are on rise. Companies both local and multinational take significant measures to tackle and to lower the effect of these risks. But these risks measurements are taken on lower level, Executives are not involved and are not aware of these risks. They must be made aware and should take interest in it, and should be concerned about the security measure of their database.

The great method for managers through which they can educate their Executives is to use Heat map.

6.2.B) Key Risk Indicators by Basel II

Key Risk Indicator is a simple concept. It measures and identifies and reports those items which are of main concern for a Bank or Organization. It signals in advance about any risk that could arise of any mismanagement in business operations. These indicators are different for different organizations according to its relevance and importance. KRI monitors important processes and ideally are setup as a system of leading risk indicators. Before a process fails it alarms the management and management acts on the signals to overcome the problem and to prevent losses.

It is the important approach an organization can use to swiftly operate in the daily business operations. An example can be customer complaints. It could be the key risk indicator that could signal about the processes of the organization and any opportunity of improvement. There are a lot of researches done on it and Bank could take help from such researches.

Management must be vigilant to carve-out the possible key indicators in their daily operations as well. It is the ongoing process that must be updated time to time. The indicator becomes key when it tracks an especially important exposure. In operational risk, we are interested in KRIs that monitor operational risk. Operational risk can be defined as the risk of loss resulting from inadequate or failed processes, systems, human performance or external events.

6.3) Possible way to Assess and Accepting Assets as Collateral

There is no particular model to assess an asset as collateral. There is a standard way which is used by all specialized and commercial banks before accepting an asset as collateral. Each commercial and specialized bank avoids negative business sectors, in which they do not advance loans. Mainly they avoid political loans to secure themselves as the banks know that it will be hard to recover them due to political interference. Because of political pressure most of the time public Sector banks do not follow the true procedure while accepting asset as collateral.

Another option could be of calculating the force sale value of an asset, the proper documentation and to check all the requir本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。