Operational Risk is defined as the risk of loss resulting from inadequate or failed processes, people, and systems or from external events.

These risks are further defined as follows:

  • Process risk – breakdown in established processes, failure to follow processes or inadequate process mapping within business lines.
  • People risk – management failure, organizational structure or other human failures, which may be exacerbated by poor training, inadequate controls, poor staffing resources, or other factors.
  • Systems risk – disruption and outright system failures in both internal and outsourced operations.
  • External event risk – natural disasters, terrorism, and vandalism.
  • Regulatory Risk

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« This page (revision-1) was last changed on 16-Aug-2016 16:36 by jim