operational risk

USAGE SUMMARY

The phrase "operational risk" is correct and usable in written English.
It is typically used in the context of finance, business, and risk management to refer to the potential for loss resulting from inadequate or failed internal processes, people, and systems, or from external events. Example: "The company has implemented new strategies to mitigate operational risk and ensure business continuity."

✓ Grammatically correct

Science

Academia

News & Media

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

CM can decrease the operational risk, improve the performance, and reduce the operation cost.

Journal of Modern Transportation

The results of operational risk assessment can help the power system operator make wise dispatching decisions.

Journal of Modern Power Systems and Clean Energy

Operational Risk Management. 3 pts.

Columbia University

That said, there are many different kinds of operational risk.

Massachusetts Institute of Technology

§ 3.161 Qualification requirements for incorporation of operational risk mitigants.

Cornell University

Those are all the kinds of operational risk.

Massachusetts Institute of Technology

§ 217.161 Qualification requirements for incorporation of operational risk mitigants.

Cornell University

a new standardized approach for operational risk, involving the abolition of internal modeling approaches for operational risk requirement calculation.

Columbia University

It reduces the operational risk of failed trades.

The Economist

Erosion reduces the efficiency and increases operational risk.

Renewable Energy

A methodology of dynamic operational risk assessment (DORA) is proposed for operational risk analysis in oil/gas and chemical industries.

Reliability Engineering & System Safety

Expert writing Tips

Best practice

Use quantitative data to illustrate the potential impact of "operational risk". Quantifying the risk with metrics such as potential financial loss or frequency of occurrence makes the analysis more compelling and actionable.

Common error

Avoid using the term "operational risk" as a catch-all for all types of risks. Instead, identify and describe specific operational risks relevant to the context to give a clear understanding of the actual threats.

Linguistic Context

The phrase "operational risk" primarily functions as a noun phrase. It acts as a subject or object in sentences, referring to the potential for loss resulting from inadequate or failed internal processes, people, and systems, or from external events. Ludwig AI confirms its validity and usability.

Expression frequency: Very common

Frequent in

Science

37%

Academia

31%

News & Media

32%

Less common in

Formal & Business

0%

Ludwig's WRAP-UP

In summary, "operational risk" is a noun phrase that describes the potential for loss arising from internal failures or external events. Ludwig AI confirms its correct usage, and it is very common across scientific, academic, and news contexts. Effective management of "operational risk" requires a comprehensive approach that identifies specific risks, quantifies their potential impact, and implements appropriate controls and mitigation strategies. Avoiding overgeneralization and maintaining clear communication are crucial for effective risk management.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

operating risk

Focuses on risks arising during regular operating activities and production of goods and services.

business risk

Focuses on the broader risks affecting a business's profitability and survival, encompassing more than just internal operations.

process risk

Specifically highlights risks associated with business processes and workflows, rather than external factors.

organizational risk

Emphasizes risks stemming from the structure, management, and culture of an organization.

functional risk

Points to risks associated with specific functions or departments within an organization.

implementation risk

Highlights risks specifically related to the execution and deployment of new strategies or systems.

project risk

Refers to the potential for negative impacts on project goals, timelines, and budgets.

systemic risk

Addresses risks that can affect the entire system or market, rather than just individual operations.

compliance risk

Focuses on the risk of violating laws, regulations, or internal policies.

hazard risk

Highlights the danger that physical, chemical, biological or safety risks will cause harm or damage.

FAQs

What are some examples of "operational risk"?

Examples of "operational risk" include internal fraud, external fraud, system failures, human error, and regulatory non-compliance. These can lead to financial losses, reputational damage, and legal penalties.

How can companies manage "operational risk"?

Companies can manage "operational risk" through risk assessments, internal controls, employee training, insurance, and business continuity planning. Effective risk management requires a comprehensive and proactive approach.

What is the difference between "operational risk" and "strategic risk"?

"Operational risk" refers to the risk of loss from failed internal processes, while "strategic risk" refers to the risk associated with a company's long-term goals and plans. Operational risks are typically short-term and internal, while strategic risks are long-term and often external.

Is "operating risk" the same as "operational risk"?

While very similar, "operating risk" often emphasizes the risks inherent in day-to-day operations, while "operational risk" has a broader scope, encompassing all potential losses from inadequate internal processes, people, or systems.