What aspect of business can operational risks affect the most?

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Operational risks primarily affect the overall efficiency of a business's operations. This is because operational risks encompass various potential issues that arise from internal processes, personnel, systems, or external events. When these risks manifest, they can lead to disruptions in workflows, delays in service delivery, increased costs, and overall decreased productivity.

For instance, if an organization has inadequate technology systems or processes in place, it can result in inefficiencies that hinder employees' ability to perform their tasks effectively. This not only impacts the immediate operations but can also affect customer satisfaction and the company's competitiveness in the market.

Focusing on the operational efficiency provides a clear understanding of how internal mechanisms and day-to-day activities are directly influenced by these risks, making it a critical aspect of business management that requires careful oversight and proactive mitigation strategies.

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