Overview#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
More Information#There might be more information for this subject on one of the following:
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