Risk associated with the potential for systems failure in a given market.
The potential for loss attributable to procedural errors or failures in internal control.
Risk of direct or indirect loss from the failure of internal processes, personnel, systems, or external events. The loss could be catastrophic or occur incrementally over time. It includes fraud, theft and computer system failure.
The risk of loss resulting from a breakdown in, for example, communications, information or transactional processing or legal/compliance issues, due to technology/systems or procedural failures, human errors, disasters or criminal activity. The Bank's definition of operational risk consists of two main components, operations risk and business/event risks.