How is Operational Loss defined in a legal contract?
- Operational Loss means a negative result stemming from various sources excluding member defaults. These sources could include employee misbehavior, mistakes, or shortcomings in judgement; leadership shortcomings and deceit; failures in information systems; interruption from external happenings leading to degradation or failure of services provided by a payment system; along with delays in payment or settlement, restricted liquidity, contagious disruptions, and ensuing legal battles. Seen in 1 SEC filing
- Operational Loss means an unexpected act or event which leads to personal injury or property damage. Seen in 1 SEC filing
- Operational Loss means a substantial loss exceeding [number], stemming from cash shortages, misplaced or mispost items, contested clerical and accounting errors, forged checks, payment of checks against stop payment orders, counterfeit currency, erroneous wire transfers, theft, robberies, defalcations, check kiting, deceitful use of credit cards or teller machines, civil money penalties, fines, lawsuits, claims, arbitration awards or any related acts or occurrences. Seen in 1 SEC filing
- Operational Loss means any losses as a result of any overpayment, underpayment, incorrect payment, or non-payment. Seen in 1 SEC filing
Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.
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Which definition should you use?
🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.
Genie Definition 1
- Operational Loss means unforeseen events causing personal injury, property damage, or financial loss from internal errors, external disruptions, or payment delays.
Relevant Contract Types
Relevant Circumstances
- Negotiations involving risk allocation in contractual relationships.
- Drafting contractual protections against operational disruptions.
Relevant Sectors
Genie Definition 2
- Operational Loss means consequential losses from incorrect transactions related to payments, accounting errors, and fraudulent activity.
Relevant Contract Types
Relevant Circumstances
- Contracts involving payments or transactions.
- Agreements that involve addressing financial loss due to errors or fraud.
Relevant Sectors
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Operational Loss means unforeseen events causing personal injury, property damage, or financial loss from internal errors, external disruptions, or payment delays.
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