(1) In this Act "operational risk", in relation to a credit union, means the risk of loss (financial or otherwise) resulting from - (a) inadequate or failed internal processes or systems of the credit union, (b) any failure by persons connected with the credit union, (c) legal risk (including exposure to fines, penalties or damages as well as associated legal costs), or (d) external events, but does not include reputational risk.
(2) A credit union shall identify the operational risks it is exposed to, or is likely to be exposed to, and provide for the management and mitigation of those risks in the credit union’s risk management system as provided for by section 76B.