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Operational risk is defined as the risk of adverse financial, business and reputational impacts arising from inadequate or unsuccessful processes, systems, human factors or external events. Operational risk management is a process of continuous and systematic identification, assessment, risk response, and operational risk reporting and monitoring.

Operational risk management should provide reasonable assurance that the CBCG will achieve its mission and objectives and protect its reputation and financial resources following the risk tolerance policy. Moreover, operational risk management aims to integrate risk information into decision-making processes in the CBCG.

For this purpose, operational risk management:

• provides regular and consistent information on risks and responses to risks;
• builds resilience into the CBCG’s organisation, processes and management;
• raises awareness and encourages risk management culture development.

The CBCG’s operational risk management policy is fully aligned with the ECB’S Operational Risk Management Policy.

The Operational Risk Management Policy application includes all activities and processes where operational risks may threaten the achievement of the CBCG’s objectives or have adverse financial or reputational impacts.