Operational risk

Risk identification and management.

(OR).

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.

Also known as operational exposure.

See also

• Basic indicator approach
• Business risk
• Big data
• Credit risk
• Exposure
• Financial risk
• General Data Protection Regulation
• Guide to risk management
• Institute of Risk Management
• Legal risk
• Market risk
• Operations risk
• Opportunity risk
• Performance risk
• Reputational risk
• Rewarded risk
• Risk
• Standardised Approach
• Systems risk
• Transaction risk
• Treasury risk
• Unrewarded risk
• Weather risk