An operational risk framework defines the organizational structure, methodologies, and systems for managing operational risk across the enterprise. Core components include governance committees, risk appetite statements specific to operational risk, risk assessment protocols, key risk indicators, loss event capture and reporting, and control testing programs. The framework typically aligns with regulatory requirements like Basel III for banks or enterprise risk management standards. A global bank's operational risk framework might include a three lines of defense model, quarterly risk and control self-assessments for all business units, automated KRI dashboards, and a centralized operational loss database feeding into economic capital calculations.