After many years of continuous development, operational risk management can now be regarded as an important and independent management discipline in its own right. It is a value-adding activity that has a direct or indirect impact on the bottom-line performances of organisations. It is fundamentally concerned with good governance and involves consistent alertness and continuous improvement. As a result, it is essential for business managers at all levels to understand the concept of operational risk management and its methodologies. Operational risk management will assist organisations to develop and implement an operational risk management process that will support the achievement of business objectives in a way that proactively addresses risk exposures and identifies potential business opportunities. In addition, Operational risk management attempts to bridge the gap that exists between some of the theoretical concepts of operational risk and the practical implementation. It deals firstly with the development phases of operational risk, and then illustrates the effective application of an operational risk management process. It also discusses relevant issues in the field and how to deal with risk exposures that could disrupt business processes and systems, with the achievement of business objectives and with the wellbeing of employees.