Although operational risk is a major threat to the insurance and reinsurance industry it is not well understood. Panelists will discuss the growing need for effective, practical methods of quantifying and managing operational risk. Quoting A.M. Best "With the possible exception of insolvency due to catastrophe losses, in A.M. Best's opinion, all the primary causes of insolvencies in this study were related to some form of mismanagement." This session will also explain how operational risk has now become a major concern with regard to solvency II.