What is the primary focus of operational risk assessment?

The primary focus of operational risk assessment is identifying risks related to an organization's operational processes. This type of assessment aims to evaluate risks that could arise from inadequate or failed internal processes, people, and systems, or from external events. An effective operational risk assessment helps organizations understand the potential failures in their daily operations and the consequent impacts on performance, efficiency, and profitability.

By highlighting the specific risks inherent in operational activities, organizations can develop strategies to mitigate those risks, enhancing overall operational resilience and ensuring that the organization's objectives are met. This focus is integral to maintaining smooth operations and safeguarding assets, resources, and systems against potential disruptions.

While assessing financial risks, regulatory compliance, and technology impacts are important components of an organization's overall risk management framework, they do not encapsulate the broader scope of operational risks that primarily affect day-to-day operational processes.