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operational risk

Operational risk is the risk of human, process, system, or technological failure as well as risks from external events (i.e., event risk).

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It is the risk of loss from everything other than credit, market, and interest rate risks.

Related Terms


Credit risk refers to the possibility that either one of the parties to a contract will not be able...

Event risk is the possibility of loss associated with fortuitous occurrences such as fires,...

Interest rate risk is the risk associated with any contractual agreement or financial transaction...

Pure risk is the risk involved in situations that present the opportunity for loss but no...

Speculative risk refers to uncertainty about an event under consideration that could produce either...