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Operational Risk

Operational Risk

Operational Risk

Operational Risk refers to the risk of loss resulting from inadequate or failed internal processes, human errors, systems or external events.

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. - Operational Risk, Wikipedia

  • IT system failures: Banks rely heavily on technology and IT systems to manage their operations and provide services to customers. If these systems fail, it can result in operational disruptions and potentially lead to financial losses.

  • Human error: Banks have large numbers of employees who handle sensitive information and perform critical tasks. Human error, such as data entry errors or incorrect decisions, can result in operational disruptions and financial losses.

  • Fraud: Fraud can take many forms within a bank, such as insider trading, embezzlement, or money laundering. Fraud can result in significant financial losses and damage the reputation of the bank.

Risk Management Activities

Making The Case For Contribution

Organisational change can be very hard to achieve since organisations are naturally protective of themselves and the status quo. Setting up an OSPO and beginning an open source journey will seem like a risky and dangerous proposition for many parts of an organisation.

Open Source Contribution Training

It is generally preferable if an Open Source Contribution Policy can be enforced via tooling (so called policy as code). However, often policy will refer to behaviours and expectations of staff which cannot be controlled through systems. In these cases, training courses will be needed to help promote desired behaviours.