Overview: Understanding Operational Risk in Context

What this session is about

This session introduces the practical meaning of operational risk and explains how it appears in everyday business activity. It helps you define the concept clearly, separate what is included and excluded from the definition, and analyse incidents using cause, event, impact, and secondary consequence.

Learning objectives

• Define operational risk in both plain and professional language.
• Explain what is included and excluded from the operational risk definition.
• Recognise operational risk across all business functions, not just risk departments.
• Distinguish between cause, event, impact, and secondary consequence.
• Apply the concepts to short workplace scenarios and a mini-case.