Key Term: Operational Risk

Business 604 – International Business
Discussion Board Forum 2 – OPERATIONAL RISKLiberty University
KEY TERM AND WHY YOU ARE INTEREST IN IT I am interested in researching this key term “Operational Risk” because of the events of the global financial crisis from a few years ago. When the financial crisis hit the United States, people were worried about the bailouts of the automakers and banks within our nation. Doing that time, the government bailout was not that popular with many people. I thought to myself if companies, and for that matter, our government, do not start looking at operational risks (government spending, processes, the people we hire or how we practice hiring), and then we are doomed to spend up our resources, and thus, be back in the same situation, or worse.
As Christians, many of us think we should solely focus on building up heavenly rewards, and rightly so; but we are also called to be good stewards of what we are entrusted with (Luke 12:48). Bill Gates said once in a lecture to Harvard graduates that his translation of that verse is, “From those to whom much is given, much is expected.” (Bill Gates, 2007). I believe that we are expected to gain wisdom and be good businesspersons and women, which requires us to assess risk, and take precautions to guard against these risks.EXPLANATION OF THE KEY TERM Satterlee defines operational risk’s as the failure of a process or people’s which results in the business or organization losing money and the result of monetary losses from an inadequate failed internal systems or external events (Satterlee, 2014). Operational risks play an important factor how a company carries out its decisions; it can be financial decision or risk, embracing a bad business strategy or a member of staff making mistakes. MAJOR ARTICLE SUMMARY I studied five scholarly…