Globalization and deregulation in financial markets, combined with increased sophistication in financial technology, have introduced more complexities into the activities of banks and therefore their risk profiles. These reasons underscore banks' and supervisors' growing focus upon the identification and measurement of operational risk The list of risks (and, more importantly, the scale of these risks) faced by banks today includes fraud, system failures, terrorism and employee compensation claims. These types of risk are generally classified under the term 'operational risk'. The identification and measurement of operational risk is a real and live issue for modern day banks, particularly since the decision undertaken by the Basel Committee on Banking Supervision (BCBS) to introduce a capital charge for this risk as part of the new capital adequacy framework (Basel II). Starting from these premises, the objective of this work is to present in the first part, the components that collectively form a sound operational risk management framework in support of the requirements prescribed by the Basel II Accord and, to explain the concept of operational risk (Ops Risk), including its scope, describe Operational Risk necessary policy and processes. In the second part of our work, we will explain the concept of "risk identification" in the context of Basel II and operational risk management and we will define and explain what is risk self-assessment. It is relatively difficult to identify or assess levels of operational risk and its many sources. Historically organizations have accepted operational risk as an unavoidable cost of doing business. Now, banking system must have an efficient management of all risks and especially of operational risk, if want to limit the cost of business.
