Definition ∞ CASP Operational Risk refers to the potential for losses incurred by Crypto-Asset Service Providers due to inadequate or failed internal processes, systems, people, or external events. This includes risks associated with technology failures, human error, fraud, or non-compliance with regulatory requirements. Effective management of these risks is paramount for maintaining service reliability and consumer trust. Such risks directly influence a CASP’s financial health and market standing.
Context ∞ With evolving regulatory landscapes, particularly in regions implementing MiCA regulations, CASP operational risk management has become a critical focus for industry participants. The ongoing challenge involves developing robust internal controls and audit frameworks that meet stringent supervisory expectations while accommodating rapid technological change. Future discussions will likely concentrate on standardized risk assessment methodologies and cross-jurisdictional cooperation to mitigate these exposures.
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