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: -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-3: -Types of Risks Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk. Business Risk: These types of risks are taken by business enterprises themselves in order to maximize shareholder value and profits.

Detailed explanation-4: -Strategic risks and operational risks are two distinct kinds. While strategic risks originate from both internal and external forces, operational risks stem solely from the internal processes within a business. And they stand to disrupt workflow.