Operational Risk means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk
The name originates from the fact that this risk category concerns threats to the normal operations of the firm or organization.
Given the wide range of business models, operational risk is a very broad category. It is customary to decompose operational risk using a Risk Taxonomy
- Directive 2006/48/EC Of the European Parliament and of the Council