FinTech Glossary

What Is Operational Risk?

Operational risk is the risk of loss resulting from inadequate or failed internal processes, systems, people, or external events, including errors, fraud, or system outages.

How Operational Risk Arises

It may arise from manual errors, weak controls, technology failures, or process gaps. Financial operations are particularly sensitive due to transaction volumes and compliance requirements.

Why Operational Risk Matters

Operational failures can lead to financial losses, regulatory penalties, and reputational damage. Managing this risk is critical for business continuity.

EnKash Relevance

EnKash reduces operational risk by automating approvals, enforcing controls, and providing real-time visibility into financial activities, reducing dependence on manual processes.