Uncovering the Hidden Risks: How Managing Operational Risk Can Transform Businesses.
The article discusses how operational risk is defined and managed in companies. It points out that the current definition of operational risk does not fully consider the role of staff and systems in identifying potential losses. The researchers argue that there is no one-size-fits-all approach to managing this risk. They also highlight that while companies have a vested interest in controlling risk, the full benefits of doing so are not yet fully understood. The main goal of the paper is to identify the main sources of operational risk and explain the potential benefits of managing it.