Therefore, Boards should be cognizant of their business model and its potential downsides, both in near term and in future. (c) Thirdly, there is operational risk due to various factors such as high attrition, lack of succession planning, skilling of staff, outsourcing, etc. (i) Attrition and high employee turnover lead to loss of institutional knowledge, disruption in services and increased recruitment costs.
Similarly, lack of succession planning, particularly for critical roles, can pose significant operational risks. (ii) Ensuring that employees have the necessary skills and knowledge is imperative to adapt to new technologies and business practices. (iii) Risks also emanate from outsourcing, including potential loss of control over critical operations, data security breaches, and increased dependency on thirdparty providers.