Operational risks relate to:
- People;
- Operating systems and processes;
- Inventory and other assets;
- Documentation;
- Statutory and legal requirements;
- Reputation.
The organization should be able to map the operational risks for a business activity and devise suitable risk control and monitoring mechanisms. Some of the tools that can be used for tracking operational risks are operational risk scorecards, event diaries and learning notes.
A sample methodology for mapping operational risk in supply chain management for delivery of cotton is illustrated in figure 3.10.
