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All termsRiskWorth knowing

Operational Risk

Operational risk is the risk of loss or disruption caused by failures in processes, people, systems or external operational arrangements. Examples can include processing errors, system failures, inadequate controls or problems involving service providers.

Why it matters to you

An RWA can depend on issuers, administrators, custodians, technology providers, banks and blockchain infrastructure. The more moving parts involved, the more important it becomes to understand how the entire system operates rather than assessing only the token.

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