After committing one of the "biggest blunders in banking history," Citibank won't be allowed to recover the almost half a billion dollars it accidentally wired to Revlon's lenders, a US District Court judge ruled. Citibank, which was acting as Revlon's loan agent, meant to send about $8 million in interest payments to the cosmetic company's lenders. Instead, Citibank accidentally wired almost 100 times that amount, including $175 million to a hedge fund. In all, Citi (C) accidentally sent $900 million to Revlon's lenders. Some lenders did return the money, but others did not. Citibank filed a lawsuit in August seeking the return of its funds, but it still has not received $500 million from 10 investment advisory firms after the accidental transfer.

Answer these questions based on the 2020 US $500 million loss of Citibank.

a. Explain operation risk and discuss how it relates to Citibank a US Bank which lost US$500 million due to human error in August 2020.

b. Select a risk management model and demonstrate how this operation risk issue can be resolved through the application of such model.

c. Discuss how the new application discussed in the case can assist Citibank to operate more effectively to serve its clients during the Covid-19 pandemic.