Can we measure Operational Risk. If yes, then how?

A No would not be a definite answer. While we can assess the extent to which our organization gets exposed to operational risk, I think at best we can assess this while taking into account risk appetite statement, risk tolerances within the organization and risk owners. Metrics can however be implemented to assess where the organization stands regarding risk management in line with set risk control standards, policies and best practices. It is at this point that we rate the risk in terms of low, medium and high risk hence culminating with Gross Risks and residual risks.

yes and there are different measurement tools through periodic RCSA's and loss data collection. 

Operational Risk includes both, quantitative as well as qualitative factors. Quantitative factors are measurable and qualitative factors are used in line with quatitatives. ORM has several dimensions and measurement models to enable identification of total inherent risks, risk appetite and residual risks. Models are basically to quantify the level of risk exposure and accordingly allocate the desired capital. Dimensions of ORM include : Loss Data Analysis, Scenario Analysis, Indicators Analysis, RCSAs, Internal Audit Reviews.

USING THE RISK MODELS & DIMENSIONS IN BEST POSSIBLE WAY WE CAN ARRIVE AT THE BEST MEASURABLE OPERATIONAL RISK.

Operational risk can be measured through mutiple tools and techniques. In the first instance, the use of Internal Loss data, external loss data, and historical events. All these can be used to measure operational risk. More importantly, in quantifying operational risk expsoure using a backtest to confirm that the actual exposure matches the incident data. Incident data should direct an organisation to its operational risk exposure.

Operational Risk cannot be completely quantified. However, there are some ways it can be measured. For instance, the historical trend in terms of financial losses arising out of failure of an event (loss of data) can be a good measure.

To prepare scorecards for measurement of reputational risk or strategic risk can be other ways to measure operational risk.