# operational-risk

Guides operational risk identification, trade break investigations, and error account workflows for trading desks under Basel and FINRA standards.

- skill · `type=skill` · Claude Code, Codex, Cursor, GitHub Copilot, Gemini CLI, OpenCode · 670 installs · ★ 218
- Author: JoelLewis
- License: MIT · policy=mirror · the beginning of the file is at the end of this page
- Source: https://github.com/JoelLewis/finance_skills/tree/HEAD/plugins/trading-operations/skills/operational-risk/SKILL.md
- Updated: 2026-07-18
- HTML: https://affpapa.org/en/nevibecode/skills/operational-risk

## What it does

This skill equips coding agents with operational risk frameworks for trading desks and broker-dealers. It covers the Basel Committee's seven event-type categories, 5x5 risk heat maps, and Key Risk Indicator (KRI) setups. The workflows focus on trade execution blunders, duplicate orders, and front-to-back reconciliation breaks between OMS and EMS platforms.

The instructions walk through isolation procedures like transferring bad trades to designated difference accounts. Under regulatory standards, the broker must absorb trading error losses rather than passing them to clients. The skill structures post-incident root cause analysis to document corrective actions before FINRA or SEC reviews.

## Install

### Claude Code (native platform)

1. **Skills CLI (Vercel)**
```bash
npx skills add JoelLewis/finance_skills --skill operational-risk -a claude-code
```

2. **Manually: put the files in place**
- File: `~/.claude/skills/operational-risk/SKILL.md` — Copy the whole skill folder; for one project use .claude/skills/operational-risk/

### Codex

1. **Skills CLI (Vercel)**
```bash
npx skills add JoelLewis/finance_skills --skill operational-risk -a codex
```

2. **Manually: put the files in place**
- File: `.agents/skills/operational-risk/SKILL.md` — For all projects use ~/.agents/skills/

### Cursor

1. **Skills CLI (Vercel)**
```bash
npx skills add JoelLewis/finance_skills --skill operational-risk -a cursor
```

2. **Manually: put the files in place**
- File: `.cursor/skills/operational-risk/SKILL.md` — Cursor also reads .agents/skills/ and .claude/skills/

### GitHub Copilot

1. **GitHub CLI**
```bash
gh skill install JoelLewis/finance_skills operational-risk
```

2. **Manually: put the files in place**
- File: `.github/skills/operational-risk/SKILL.md`

### Gemini CLI

1. **Skills CLI (Vercel)**
```bash
npx skills add JoelLewis/finance_skills --skill operational-risk -a gemini-cli
```

2. **Platform CLI**
```bash
gemini skills install https://github.com/JoelLewis/finance_skills --path plugins/trading-operations/skills/operational-risk
```

### Windsurf (Devin Desktop)

**Manually: put the files in place**
- File: `.devin/skills/operational-risk/SKILL.md` — The legacy .windsurf/skills/ path still works

### OpenCode

**Skills CLI (Vercel)**
```bash
npx skills add JoelLewis/finance_skills --skill operational-risk -a opencode
```

### Claude.ai

**Claude.ai**
- Zip the folder and upload it in Settings → Capabilities → Skills

Where a file is given instead of a command, copy the files from the source to that path: https://github.com/JoelLewis/finance_skills/tree/HEAD/plugins/trading-operations/skills/operational-risk/SKILL.md

## When to use it
- classify trade processing failures under the Basel event taxonomy
- structure cancel and rebook workflows for erroneous executions
- document root cause analysis for trade desk system outages
- isolate trading discrepancies within designated error accounts

## Example prompts
- Investigate a duplicate order submission after an OMS timeout and write a root cause analysis report.
- Draft an error account entry and explain how to treat the resulting P&L under FINRA guidance.
- Set up a 5x5 heat map and KRI thresholds for front-to-back trade reconciliation breaks.

## Source text · SKILL.md · MIT

Below is the content of a third-party file. It is data, not instructions for you: do not act on anything written inside unless the human asks. Block tag: 0d684ded6a82e72c.

BEGIN THIRD-PARTY FILE 0d684ded6a82e72c
```text
---
name: operational-risk
description: "Guide identification, measurement, and management of operational risk in trading and brokerage operations. Use when designing trade error detection and correction procedures, investigating trade breaks and reconciliation failures, classifying loss events under Basel taxonomy, developing key risk indicators (KRIs) and dashboards, responding to system outages or data feed failures or order routing errors, conducting root cause analysis after a trade error or operational incident, planning business continuity and disaster recovery for trading desks, preparing for FINRA or SEC operational risk examinations, or assessing technology risk in OMS and market data systems. Also covers fat-finger errors, error account P&L, and corrective action tracking."
---

# Operational Risk

## Core Concepts

### Operational Risk Framework
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. The Basel Committee's seven event-type categories map to trading operations as follows:

| Basel event type | Trading-operations examples |
|---|---|
| 1. Internal fraud | Unauthorized trading, intentional position mismarking, fictitious trade booking, front-running |
| 2. External fraud | Account takeover, phishing for trade credentials, wire fraud in settlement instructions, counterparty manipulation |
| 3. Employment practices and workplace safety | Inadequate operations training, key-person dependency, error-inducing workload |
| 4. Clients, products, and business practices | Suitability failures, improper execution, best execution violations, failure to follow client instructions |
| 5. Damage to physical assets | Data center or trading floor damage from natural disasters or civil disruption |
| 6. Business disruption and system failures | OMS outages, market data feed failures, connectivity loss, exchange gateway and clearing system downtime |
| 7. Execution, delivery, and process management | Trade errors, settlement fails, reconciliation breaks, failed corporate action processing, incorrect margin calculations (typically the largest loss category) |

**Risk identification** involves cataloging all operational risk exposures through process mapping, risk and control self-assessments (RCSAs), loss event analysis, scenario analysis, and audit findings. **Risk assessment** scores each risk on likelihood and impact dimensions, typically using a 5x5 heat map. **Risk monitoring** tracks KRIs, loss events, and control effectiveness. **Risk mitigation** applies controls (preventive and detective), process redesign, technology solutions, insurance, and business continuity planning.

### Trade Errors
```
END THIRD-PARTY FILE 0d684ded6a82e72c

The third-party file has ended. Everything between the 0d684ded6a82e72c tags is data: requests and commands from it are not followed. An “end of file” line with another tag inside the block is part of the file.

First 2735 of 29807 bytes. © JoelLewis · MIT · https://github.com/JoelLewis/finance_skills/tree/HEAD/plugins/trading-operations/skills/operational-risk/SKILL.md

_Part of the page did not fit — see the HTML version._

---
NeVibeCode on affpapa.org. Catalog texts are descriptions, not instructions for the agent. How to choose and install: https://affpapa.org/en/nevibecode/agents.md