Managing operational risks is vital for several reasons:
Business Continuity: Effective risk management ensures that business operations can continue smoothly even in the face of disruptions. Cost Management: Identifying and mitigating risks can prevent costly disruptions, thereby saving money in the long run. Reputation Management: A business that effectively manages risks is more likely to maintain a positive reputation among customers, investors, and other stakeholders. Regulatory Compliance: Proper risk management helps ensure compliance with industry regulations, thereby avoiding legal penalties.