Internal Fraud under the Basel II Accord include operational risk events such the misappropriation of assets, tax evasion, intentional mismarking of positions, and bribery.

The banking book of a bank is the portfolio of assets, primarily loans, a bank expects to hold until maturity when the loan is repaid fully; typically refers to the loans the bank underwrites.

A yield curve illustrates the relationship between prevailing interest rates based on the time remaining to maturity.

A zero-coupon bond is a type of fixed income instrument that makes only one payment at maturity, which includes both interest accrued and the repayment of principal; it is traded at a deep discount fr [..]

Vendors, sellers of goods or services, in operational risk management typically refer to external entities providing various operational risk management related services.

Volatility, or conditional standard deviation, quantifies the risk of a financial instrument over a specified time horizon.

An unexpected loss describes the loss in excess of the expected loss and is expressed with a certain confidence level.

Value-at-Risk, a measure of risk, estimates the potential loss of at a specified confidence level using statistical analysis.

Vega, a measure of sensitivity to volatility, is the first derivative of the option value with respect to the volatility of the asset or instrument underlying the option.

Underwriting assesses the borrower's eligibility to receive a credit, a loan or a bond, by analyzing financial and other information furnished by the potential borrower or obtained elsewhere.