Operational Risks

Operational risks (also production risks) is a concept of risk management that refers to a kind of business risk. These types of risks are arising from the failure or malfunction of smooth operation. These risks include power outages, failures and accidents, due when spoilage happens or production is stopped. These risk include also a replacement for a sick worker or the worker leaving the job. Attention must be paid to the operational risks to their prevention or secondary risks may occur. If, despite the measures taken, failure occurs, it is necessary to intensively devote to eliminate its consequences and to minimize the impact associated with the interruption of production.

Simply said, operational risks are all risks that may threaten the day-to-day business operations.