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Operations risk refers to the potential for financial loss or harm to a company's reputation resulting from inadequate or failed internal processes, systems, people, or external events. It encompasses risks associated with the day-to-day operations of a business, including errors, fraud, system failures, and disruptions in the supply chain. Operations risk can arise from a variety of sources, such as technology failures, human error, regulatory changes, natural disasters, and geopolitical events. Managing operations risk involves identifying potential threats, implementing controls and safeguards, and developing contingency plans to mitigate the impact of adverse events on the organization.