Business Disruption and System Failures

Business disruption refers to unexpected events that interrupt normal operations, such as natural disasters, cyberattacks, or supply chain issues. System failures are technical breakdowns, like software crashes or equipment malfunctions, that hinder productivity. In operational risk management, organizations identify, assess, and mitigate these risks to ensure continuity and minimize losses. By preparing for both disruptions and failures, businesses can maintain resilience, protect their assets, and provide reliable services to customers. Effective management in these areas is essential for long-term success and stability.