Operational risk management is the structured process of identifying, assessing, controlling, monitoring, and updating risks that can affect day-to-day operations. In manufacturing, it commonly refers to managing risks that could disrupt production, quality, delivery, equipment availability, material flow, data integrity, or process compliance.
Operational risk management is used in production planning, quality management systems, maintenance, supplier management, change control, and MES or ERP workflows. Typical examples include tracking the risk of a critical machine failure, a supplier shortage, an uncontrolled process change, missing inspection evidence, or incorrect work instructions reaching the shop floor.
It should not be confused with general business risk management, which may include broader financial, market, or strategic risks. In regulated or quality-sensitive manufacturing, operational risk management is often linked to risk-based thinking, risk registers, process controls, corrective actions, and audit evidence, but it does not by itself imply compliance, certification, or a specific risk method.