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Operational risk involves the risk a company faces as it conducts its basic daily operations. Examples of this would be an associate does not pay attention to the discount pricing of a clothing item, causing twenty customers to be undercharged for the item and the company losing revenue. Or a refrigerator at an upscale restaurant fails causing the spoilage of over $2,000 worth of food. Operational risk is different than the other types of risks we have discussed thus far as it is not managing the unknown, but being able to hand the established processes of the company.

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