Operational risk

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Revision as of 13:44, 19 July 2016 by imported>Doug Williamson (Amend link.)
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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.


Operational risks include - among others:

  • Operations risk;
  • Systems risk;
  • Legal risk; and
  • Weather risk.


See also