Glossary definition: Operational Risk

Operational Risk: A Guide for Businesses

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. It is the risk of loss associated with inadequate or failed internal processes, people, and systems, or from external events. It encompasses a wide range of risks including strategic, compliance, reputational, financial, IT, and physical risks. Operational risk is a broad term that encompasses the risk of loss due to inadequate or failed internal processes, people, and systems, or from external events. It is the risk of losses resulting from inadequate or failed internal processes, people, and systems, or from external events. This includes risks associated with legal and regulatory compliance, financial losses, reputational damage, IT security breaches, and physical risks such as natural disasters. Operational risk management is the process of identifying, assessing, and mitigating operational risks in order to protect an organization’s assets and operations. This involves the development of policies and procedures, the implementation of risk management systems, and the monitoring of operational risks. Operational risk management is an essential component of any successful business, as it helps to ensure the safety and security of an organization’s resources and operations.