Operational risk

Operational risk is the risk of adverse effects resulting from inadequate or failed internal processes, people and systems and / or external events such as adverse changes to the economic environment.

Investors in companies generally expect the Board to mitigate or minimise these risks, to ensure that they cause as little harm as possible to the organisation.

See also

• Business risk
• Big data
• Financial risk
• Guide to risk management
• Market risk
• Unrewarded risk
• Rewarded risk