Operational risk

Operational risk refers to the potential for loss resulting from inadequate or failed internal processes, people, systems, or external events. It encompasses a wide range of risks that can result from various sources, including: 1. **Internal Processes**: Flaws or inefficiencies in organizational procedures, workflows, or management practices that can lead to errors or failures. 2. **Human Factors**: Mistakes made by employees, fraud, or unethical behavior.