Some Examples of Operational Risks :

Information Technology Risk:

Banks in India are well supported by the Information Technology to carry out their banking business and operations. This has increased the banks’ operational risk. The risks associated with IT are: Error Risk, Fraud Risk, Interruption Risk etc., In case of weak IT controls and non adherence to the laid down policies and procedures, the computerized systems could be exposed to unauthorized access. Pre acceptance  tests if not properly carried out can lead to issues which can be termed as operational risk on account of IT. If the computerized control (both around the computer system and through the computer system) is not properly ensured, it can lead to a situation of fraudulent activities. Failure on the part of the management to ensure regular testing of disaster management control, in case of emergency, might increase the risks. Hence importance should be given and care should also be exercised by having a proper operational risk management with special reference to the Information Technology.