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Operational risk encompasses the potential financial losses that may arise from the day-to-day operations of a business. This type of risk is primarily associated with failures in internal processes, people, and systems, or from external events. For instance, operational risks may stem from inefficient processes, human error, system failures, or fraud, which can directly impact a firm's financial performance.

On the other hand, financial risk tends to refer more broadly to risks related to the financial management of a company, such as credit risk, liquidity risk, and currency risk. Strategic risk involves uncertainties that can arise from a firm's strategic decisions or from the market environment, potentially affecting long-term goals and objectives. While business risk is a general term that can encompass many risks a business faces, operational risk specifically focuses on the internal operational aspects that lead to financial losses. These distinctions highlight why operational risk is the correct answer in this context.