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Glossary

Operational risk management

Managing the risk of loss from failed internal processes, people, systems or external events.

What it means

Operational risk is the Basel definition adopted well beyond banking: loss resulting from inadequate or failed internal processes, people and systems, or from external events. It covers process failure, human error, system outage, fraud, supplier failure and disruption.

It is the category where the decision trail matters most, because operational losses are usually reviewed after the fact. The question asked is rarely whether the risk was known, but what was decided about it, by whom, and on what basis.

Where MyRISK fits

What we do about it

MyRISK Trace preserves what was known at the time, who had authority, why the decision was reasonable and what has changed since — so an operational decision can be explained later without reconstruction.

MyRISK Trace

Is this the thing you are actually trying to fix?

A definition rarely settles it. Tell us what happened — the request, the finding, the challenge or the incident — and we will say where to start, or that it isn't us.