Operating Risk

Operating risk includes the risk of doing the right things in the wrong way. For example, assume that a payroll manager is supposed to run the biweekly payroll after the human resources manager enters newly hired employees into the system. If the payroll manager runs the payroll too early (i.e., before the newly hired employees are entered), the newly hired employees do not get paid, and the payroll report generated is inaccurate. See also financial risk and information risk.