# Operational risk

`kaal:entity:operational-risk`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `operational-risk`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 2 works, 2019 to 2021.

**2019**

- [3411110-001](https://wulfkaal.github.io/claims/3411110-001) [failure/asserted] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110
- [3411110-002](https://wulfkaal.github.io/claims/3411110-002) [mechanism/asserted] *(failure mode)* -- 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.
  > Legacy systems in which multiple firms are trading the same securities utilize multiple ledgers which increases operational risks and increases costs.
  Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110
- [3411110-026](https://wulfkaal.github.io/claims/3411110-026) [failure/argued] *(failure mode)* -- 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.
  > 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).
  Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**2021**

- [3936876-027](https://wulfkaal.github.io/claims/3936876-027) [mechanism/argued] -- 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.
  > Operational risk is inherently high in custody services because of the high volume of transactions processed daily.
  Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/operational-risk.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.