“The Basel Committee (2004) defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. The committee indicates that this definition includes legal risk but excludes systemic risk and reputational risk. Today, financial firms are paying a lot of attention on this aspect of risk management. And it is not surprising because although the losses from operational risk are low in probability, the magnitude of the losses are significant. Inface, the losses can sometimes wipe out all the capital of the firm. Operational Risk is a catch all category in which all risk other than market or credit risk are captured.