Operational Risk Management

Introduction

Risk management is undeniably complex, yet it is paramount for all organizations to properly identify, assess, and manage risks. Risk is an inherent, unavoidable part of any operation. It can never be completely eliminated, but efforts can be made to maximize potential gains while diminishing the impact and occurrence of potential losses. By systematically and proactively managing risks, organizations can mitigate operational drawbacks and increase the likelihood that organizational objectives are achieved.

In this book, we explore the concept of risk as well as the mechanisms shown to manage operational risks—otherwise known as the organizational control system. We broadly define operational risks as forces and events that potentially ...