OPERATIONAL RISK

The source of a potential risk to an operation could be internal or external in nature. Financial loss can arise due to inadequate or failed internal processes, people and systems.

It is essential for an enterprise to plan and monitor its operational activities and, at the same time, evaluate possible inconsistencies and risks.

OBJECTIVE

• effective and efficient use of resources
• machinery and equipment failure management
• product liability management
• business and production interruption

RELEVANT QUESTIONS

• operational loss and likelihood of impact
• financial sustainability and reserve capital
• operational risk exposure

OPERATIONAL RISK REPORT

An internal risk assessment highlights possible hazards and weaknesses in operational activity. The identification of operational risk factors enables the planning of risk mitigating activity. Risk awareness helps to ensure that decisive action is exercised in controlling and constraining risk.