Operational risk management encompasses the methods and practices organizations use to minimize losses from operational failures, including process errors, technology outages, fraud, human error, and external disruptions. It involves risk identification through techniques like risk and control self-assessments, loss event databases, and key risk indicators that trigger early warnings. The Basel Committee framework defines operational risk categories including internal fraud, external fraud, employment practices, and business disruption. For instance, a payment processor implements operational risk management by monitoring transaction error rates, conducting regular disaster recovery tests, implementing segregation of duties, and maintaining insurance coverage for operational losses.