Operational risk in banks refers to the potential losses resulting from
inadequate or failed internal processes, systems, or external events. This type of risk can arise from human error, system failures, fraud, or disruptions in business operations. Operational risk
management involves implementing robust internal controls, conducting regular audits, and investing in technology to minimize vulnerabilities. Effectively managing operational risk is crucial for
maintaining the stability and reputation of a bank while ensuring regulatory compliance and safeguarding customer assets.