← Glossary
Operational risk
Risk and control self-assessment
RCSA
In French : Auto-évaluation des risques et des contrôles
An exercise in which frontline staff identify their risks, assess control effectiveness and determine residual risk.
Source : BCBS PSMOR, principe 6
Related terms
Key risk indicator
A metric that signals a change in exposure to a risk, ideally before a loss materialises.
Residual risk
The risk remaining after treatment. It must be explicitly accepted by a body with the authority to do so.
Loss data collection
Systematic collection of incidents that caused an operational loss, with amount, cause, business line and event type. Without root cause analysis, collection produces nothing.