Operational Risk

Operational risk is typically associated with the following types of potential loss: ? People. Employees could intentionally or unintentionally make mistakes or fail to follow existing policies or procedures, resulting in losses. ? Process. Deficiencies in an existing procedure, or the absence of a procedure could result in losses. ? Systems. Automated processes and systems plus the underlying technology security or infrastructure could break down and cause losses. ? External. Third-party actions and other artificial or natural forces could create losses for a company.