What are the types of operational risks?

Operational risks refer to the potential losses that an organization may encounter due to internal processes, systems, or people. There are various types of operational risks that organizations can face. Firstly, human errors form a significant category, encompassing mistakes made by employees in their day-to-day activities. Next, technological risks include system failures, cyberattacks, or data breaches. Additionally, process risks arise from ineffective or faulty processes within an organization, leading to the inability to achieve objectives efficiently. External risks, such as natural disasters, political instability, or changes in regulations, can also hinder an organization's operations. Lastly, fraud risks involve intentional acts of deceit by individuals either within or outside the organization. Recognizing and effectively managing these types of operational risks is essential for businesses to safeguard their operations and mitigate potential losses.

This mind map was published on 1 November 2023 and has been viewed 65 times.