Operational Risk

From Open Risk Manual

Definition

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[1].

This includes loss from events related to technology and infrastructure, failure, business interruptions, staff-related problems, and from external events such as regulatory changes.

The name originates from the fact that this risk category concerns threats to the normal operations of the firm or organization. Any Risk Event realization under the operation risk Risk Type would be denoted as an Operational Risk Event

Subcategories

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

References

  1. Directive 2006/48/EC Of the European Parliament and of the Council

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with or correctly interprets the concepts covered by the FIBO ontology.

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