Operational Risk An operational risk is a risk arising from a company's business functions and from the practical implementation of the management's strategy. As such, it is a very broad concept concerning human and systemic errors that include information risks, fraud, physical or environmental risks, etc. The term operational risk is most commonly found in risk management programmes of banks and other financial organisations that have implemented procedures and frameworks such as Basel II. Globalisation and deregulation in financial markets, combined with increased sophistication in financial technology, have introduced more complexities into the activities of all banks and therefore their risk profiles. These reasons underscore banks’ and supervisors' growing focus upon the identification and measurement of operational risk. Please click here to access further articles and resources related to operational risk management.