Operational risk is a tricky area in finance, making it hard to come up with a standard way to measure it. The current method used by Basel III has some flaws that were exposed during the financial crisis. This is concerning because this method is now being applied to more types of financial entities, not just banks. The Basel Committee has been trying to improve this method, but their focus has mainly been on banks, leaving other financial entities out. This means the current way of measuring operational risk might not be suitable for all financial institutions.