Operational risks refer to the potential losses that a business may face due to inadequate or failed internal processes, systems, or external events. These risks can arise from various sources, including human error, technical failures, fraud, or natural disasters. For example, if a company's IT system crashes, it may disrupt operations and lead to financial losses. Managing operational risks is crucial for organizations to ensure smooth functioning and protect their assets. Companies often implement strategies such as risk assessments, employee training, and robust internal controls to mitigate these risks. By identifying and addressing potential vulnerabilities, businesses can enhance their resilience and maintain operational efficiency.