Operational risk

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  • Operational risk
    • "the risk of losses resulting from inadequate or failed internal processes, people and systems, or external events"
    • Reputational risk
      • Any kind of deterioration in the way in which the company is perceived
    • Litigation risk
      • Loss of damage which is a consequence of legal action
    • Process risk
      • Losses resulting from poorly designed business processes
    • People risk
      • Losses resulting from human error or deliberate actions
    • Systems risk
      • Losses resulting from poorly designed systems
    • Event risk
      • Diaster risk-losses from one-off incidents such as fire
      • Regulatory risk- new laws/regulations affect the business operations
      • Physical risk- such as climate & geology
      • Social risk- change in tastes or demography
      • Economic risk- changing economic conditions
      • Political risk- the risk a host government may act against you as a company

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