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Operational Risk is a type of risk that arises from the execution of a company's business activities. It is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. It is a broad concept that encompasses legal risk, strategic risk, reputational risk, and other risks that can arise from the operations of a business.
Operational Risk is an important factor in accounting, as it can have a significant impact on a company's financial performance. Accounting professionals must be aware of the potential risks associated with a company's operations and take steps to mitigate them. This includes developing and implementing effective internal controls, monitoring and reporting on operational performance, and ensuring compliance with applicable laws and regulations.
Companies in the Operational Risk market include Deloitte, Ernst & Young, KPMG, PwC, and Accenture. Show Less Read more
