Final answer:
Operational Risk is associated with potential losses due to internal failures or external events, and assessing this risk is vital for investors considering various financial assets.
Step-by-step explanation:
The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events is known as Operational Risk. This encompasses a range of economic risks that individuals or institutions have minimal control over, such as the occurrence of natural disasters, wars, or widespread economic downturns. For investors, analyzing the risk involved in different types of financial assets is critical, and considerations include the expected rate of return, the liquidity of the investment, and the externalities that could influence the asset's performance.