Double-edged sword: Technology and operational risk under the new Basel Capital Accord

The Basel Committee on Banking Supervision recently issued for comment a consultive document on The New Basel Capital Accord. Issuance of New Basel garnered national and international coverage in finance newspaper. The banking and insurance joint venture was launched modestly, with little fanfare. The common fulcrum of these developments - technology - is the focal point of this article, which examines the emerging issue of operational risk as it is defined in new Basel and as it manifests itself in new product and services initiatives such as the banking and insurance joint ventures.