MANAGEMENT

Detailed explanation-1: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.

Detailed explanation-2: -Examples of operational risk include: Employee conduct and employee error. Breach of private data resulting from cybersecurity attacks. Technology risks tied to automation, robotics, and artificial intelligence.

Detailed explanation-3: -Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can trigger operational risk.

Detailed explanation-4: -Operational risk is usually caused by four different avenues: people, processes, systems, or external events.