Abstract
The paper focuses on up to date topic of operational risk management within financial institutions. Special attention is paid to insurance and its potentiality to be used as operational risk management tool.
Insurance is analyzed within the framework of operational risk, i.e. we study the overall insurability of operational risk events, describe the specific features of insurance for particular categories of operational risk, specific features of insurance for operational risk and its pros and cons. We also mention the possibility to consider insurance coverage for the purpose of regulatory capital charge calculation within Basel II framework.