Operational risk refers to the potential for loss resulting from inadequate or failed internal processes, people, systems, or external events. This type of risk can arise from various sources, including human errors, technical failures, fraud, or natural disasters. Organizations must identify and manage these risks to ensure smooth operations and protect their assets. Effective management of operational risk involves implementing robust controls, conducting regular assessments, and fostering a culture of risk awareness among employees. By addressing potential vulnerabilities, businesses can minimize disruptions and enhance their overall resilience, ultimately supporting their long-term success in a competitive environment.