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16 Examples of Operations Risk

 , updated on July 20, 2023
Operations risk is the potential for losses due to failures of an organization's core business processes. In many cases, operational processes are a focus of risk management activities due to their critical importance to organizational goals such as revenue generation. The following are common examples of operations risks.

Process Risk

The risk of process failures such as a mistake or broken machine.

Technology Risk

Technology failures such as system downtime.

Cybersecurity Risk

Cybersecurity incidents that halt or interfere with operations.

Human Resources Risk

Employee turnover, work absences and other employee related risks.

Supply Chain Risk

Supply chain disruptions or delays.

Supplier Risk

Issues with a supplier such as low performance or bankruptcy.

Disaster Risk

Disasters such as fires, hurricanes and earthquakes.

Infrastructure Risk

The risk that infrastructure such as roads, electricity and internet will experience an outage.

Facility Risk

Risks related to a facility such as a political disruption that prevents access.

Country Risk

The risk of major disruptions to operations or suppliers in a foreign country.

Quality Risk

Quality failures such as a machine that produces defects.

Health and Safety Risk

The risk of a workplace health and safety incident.

Compliance Risk

The risk of compliance violations related to your operations.

Reputational Risk

Reputational risk to a company due to operational failures or ethical issues.

Environmental Risk

The risk that your operations will damage the environment.

Social Responsibility Risk

The risk that your operations will have a negative impact on people.
Overview: Operations Risk
Type
Definition
The risks related to an organization's core processes.
Also Known As
Operational Risks
Specific Example
The risk that a production line will be halted due to supply chain delays.
Risk Treatments
Related Concepts
Next: Business Risk
More business risks:
Budget Risk
Country Risk
Customer Risk
Cybersecurity Risk
Dispute Risk
HR Risk
Platform Risk
Progress Trap
Resource Risk
Risk Impact
Risk Measurement
Service Risk
Short Squeeze
Technology Risk
Weather Risk
Workforce Risk
More ...
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