Explanation:
According to the Basel II operational risk event type classifications, "Execution, Delivery, and Process Management" (EDPM) captures losses originating from failed transaction processing or process management, as well as from relations with trade counterparties and vendors. Examples of events under this category include data entry errors, collateral management failures, unapproved access given to client accounts, and vendor disputes.
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Q.45 The head of risk management at a large American Bank has been tasked with identifying the event category of a loss that the bank suffered the previous year. Which one of the following event categories is concerned with losses from failed transaction processing and from relations with trade counterparties and vendors?
A
Internal fraud
B
Execution, Delivery, and Process Management
C
Employment practices and workspace safety
D
Business disruption and system failures
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