Operational Risk

Uncertainty related to people, processes, systems, or external events that could result in losses due to inadequate or failed internal procedures. Operational risks include human error, fraud, system failures, business disruptions, legal liabilities, and model failures. In RBPM, operational risks are typically managed through process controls, business continuity planning, training programs, and technology solutions. Effective operational risk management requires clear risk tolerance levels, regular control assessments, and continuous monitoring of key risk indicators.