{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/operational-risk",
 "identifier": "kaal:entity:operational-risk",
 "name": "Operational risk",
 "termCode": "operational-risk",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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 "sha256": "c260dcd58319bf22b801c259aee1f4908829fdd760c613ad483b627f3e8f6942",
 "additionalProperty": [
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   "name": "status",
   "value": "derived"
  },
  {
   "@type": "PropertyValue",
   "name": "claim_count",
   "value": 4
  },
  {
   "@type": "PropertyValue",
   "name": "work_count",
   "value": 2
  },
  {
   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2019",
    "2021"
   ]
  },
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 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3411110-001",
   "identifier": "kaal:claim:3411110-001",
   "text": "Existing ledger structures for securities offerings are defective: because individual firms rely on batch processing, the model generates dependencies, multi-day settlement times, distinctive operational risks, and duplicative costs.",
   "abstract": "ledger structures applicable to securities offerings are subject to significant shortcomings: While for individual firms, batch-processing is the norm, this model creates numerous dependencies, multi-day settlement times, unique operational risks, and duplicative costs.",
   "citation": "Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "asserted",
   "is_failure_mode": true,
   "scope_conditions": [
    "legacy, non blockchain securities settlement infrastructure"
   ],
   "source_pdf_sha256": "c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3411110-002",
   "identifier": "kaal:claim:3411110-002",
   "text": "When multiple firms trade the same securities in legacy systems, each maintains its own ledger, and that duplication is itself the source of increased operational risk and cost.",
   "abstract": "Legacy systems in which multiple firms are trading the same securities utilize multiple ledgers which increases operational risks and increases costs.",
   "citation": "Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "asserted",
   "is_failure_mode": true,
   "scope_conditions": [
    "multiple firms trading the same security",
    "legacy multi ledger systems"
   ],
   "source_pdf_sha256": "c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3411110-026",
   "identifier": "kaal:claim:3411110-026",
   "text": "Near instant settlement creates its own regulatory problem: there is no practical ability to correct trade errors when settlement is same day, whereas the T+2 or T+3 structure supplies a correction window even as its delay causes other trading violations.",
   "abstract": "Settlement-related issues (e.g., no practical ability to correct trade errors because of same-day / near-instant settlement versus T+3 / T+2 structure).",
   "citation": "Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "same day or near instant settlement compared with T+2 and T+3"
   ],
   "source_pdf_sha256": "c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3936876-027",
   "identifier": "kaal:claim:3936876-027",
   "text": "Operational risk is inherently high in custody services because of the high volume of transactions processed daily, and those risks are magnified in a global custody operation running around the clock across different markets.",
   "abstract": "Operational risk is inherently high in custody services because of the high volume of transactions processed daily.",
   "citation": "Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "custody services generally, and global custody in particular"
   ],
   "source_pdf_sha256": "9bc0903d01910460298e754c451f027df4324367359800a98ee8e638d94aff55",
   "status": "current"
  }
 ],
 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'operational-risk'. Derived node: a roster, not an adjudicated definition."
}