Operational risk also covers clerical errors, system failures (including those caused by cyberattacks), natural disasters, and penalties or fines arising from misconduct such as money laundering. Its subcategories include clerical risk, the risk of loss when officers and employees fail to process work accurately or cause accidents or fraud, and system risk.
Under capital adequacy regulation, it is one of the risks that require capital, alongside credit risk and market risk, and the required amount is calculated with the standardized approach, which multiplies the business indicator component by the internal loss multiplier.