QUICK DEFINITION
Operational Risk — The risk of loss or disruption arising from inadequate or failed processes, people, systems or external events.
WHY IT MATTERS
Why Operational Risk matters in finance
Cyber incidents frequently become financially material through operational rather than purely technical channels.
FINANCIAL SYSTEM CONTEXT
← Back to the Financial Security GlossarySecurity is also a market-infrastructure question
In financial services, operational risk should be understood in relation to operational continuity, data integrity, payments, market infrastructure and interconnected dependencies. A control can be technically effective while still leaving material resilience risk if critical services cannot continue or recover during disruption.