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Glossary › Operational Risk
What is Operational Risk ?
Operational risk covers failures arising from outages, human error, process gaps, system breakdowns, or external disruptions. In TPRM, operational risk assesses whether vendors can maintain stable performance and meet obligations even during disruptions..
FAQs
What causes operational risk?
Process failures, human errors, outages, or disruptions.
Do vendors increase operational risk?
Yes, especially if they support critical functions.
Can operational risk be measured?
Yes, through KPIs, SLAs, and incident trends.
Responsible-AI TPRM Guide
Discover how risk teams apply AI responsibly to reduce third-party blind spots and stay audit-ready across global regulations.