Operational Risk
/ˌɒpəˈreɪʃənəl rɪsk/
Definitions
- (n.) The risk of loss resulting from inadequate or failed internal processes, people, systems, or external events in a legal or regulated context.
Banks must maintain capital reserves to mitigate potential operational risks.
Forms
- operational risk
Related terms
See also
Commentary
Operational risk often requires careful contractual allocation and regulatory compliance; clear definitions in agreements help limit exposure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.