June 2007 Capital Adequacy Extension © Copyright 2007, CCRO. All rights reserved. Page 46 of 92 4.12. Conclusion In assessing the complete picture for Operative Risk, one should take an enterprise wide view to make a determination how the competing interests of capital should be allocated based on assessed risk. This will become more important when Market and Credit risks are factored into the overall risk assessment. The principles described above are universal it does not matter whether your company is an Exploration and Production Company, a Merchant Power Producer, a Utility, or otherwise. The bottom line is in order to make an appropriate assessment of capital adequacy for operative risks, a company should create a system to identify, measure, monitor, and communicate operational risks as an embedded part of the overall risk management system. While efforts to quantify these risks should be undertaken, often times these risks cannot be quantified however, the qualitative work that goes into identifying and understanding these risks brings rewards through the introduction of efficiencies and spotting operative problems before they become unmanageable.