On company’s risk dashboard, the signal for operational risk should be flashing red. Over the past ten years, losses from operational risk have soared. Companies that want to achieve a sustainable and profitable business need to focus on building a framework to manage operational risk. What Is Operational Risk? Operational risk summarizes the risks a company undertakes when it attempts to operate within a given field or industry. Operational risk is the risk not inherent in financial, systematic or market-wide risk. It is the risk remaining after determining financial and systematic risk, and includes risks resulting from breakdowns in internal procedures, people and systems. This broad definition covers a myriad of non-financial risks, including conduct risk, fraud, cyber, vendor risk, privacy, unauthorized trading and information security. Building an Operational Risk Framework Operational Risk Framework is the totality of the structures, methodology, procedures and…