1.1 Operational Risk Operational risk arises from the potential for loss due to deficiencies in system design and/or implementation which lead to reliability or integrity issues. The system is exposed to the inherent risk of an interruption or break-down of systems due to system outage, obsolescence, incompatibility and design flaws. Over-reliance on outsourcing may also expose the system to operational risk if not properly mitigated and monitored. Operational risk could also arise from customer misuse or lack of understanding about security and confidentiality. The risk may be heightened if the customers are not adequately educated about the importance of security precautions.