This book aims to provide empirically grounded insights into the process of diagnosing operational risks as well as designing, implementing and maintaining a control system that properly manages those risks. We keep our examples concise, which enables us to deliver an efficient but thorough overview of the theory and application of operational risk management with an emphasis on employee management and incentive systems. We, therefore, recommend combining this material with case studies, exercises and academic articles to further illustrate the theories presented. Although its intended users are students, this book also may prove valuable to managers, auditors, investors, consultants, regulators and any other party looking to gain additional insights into the operational dynamics of modern organizations.