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When people ask, “what are operational risks?” , the short answer is simple: they are problems that come from the way a business runs its day-to-day operations. These problems can lead to financial loss, reputational damage, or even business interruption. Operational risk definition is frequently referred to as the threat of loss due to people, processes, or systems or external events. The most famous explanation is provided by The Basel Committee on Banking Supervision : ope

Leaving the United States and renouncing U.S. citizenship or long-term resident status requires an exit tax. What is the exit tax? Let’s break down the rules of expatriate taxation and see how everything works in reality.  What Is an Exit Tax?  Exit tax definition Exit tax is the final tax paid by individuals renouncing their U.S. citizenship or long-term residents who cease their status as permanent residents. In other words, exit taxation is a one-time charge on unrealized

Regulatory Arbitrage Explained Definition and meaning To understand what is regulatory arbitrage, it is important to begin with the regulatory arbitrage definition. Regulatory arbitrage is a practice where a company exploits the differences in regulations, laws, or norms that apply in various areas or countries to gain a financial or operational advantage. That is to say, if a country or an industry has tougher regulations and another has more relaxed ones, companies might mo

De-risking Explained De-risking definition and meaning In banking, de-risking refers to narrowing or exiting customer groups, products, countries, or relationships that sit outside your risk appetite. In plain terms, de risking definition refers to the set of decisions that reduce exposure to financial crime, sanctions, fraud, and operational loss. Practically, de risking meaning covers both exits (closing specific accounts or correspondent lines) and mitigants (tighter onboa