In risk management, which term describes risks faced in the day-to-day operations of a business?

The term that describes risks faced in the day-to-day operations of a business is operational risk. This encompasses risks that arise from the everyday activities of a business, including issues related to processes, people, systems, and external events. For instance, operational risks can include failures in supply chain management, system outages, employee mistakes, or fraud. Effective risk management practices identify and mitigate these risks to ensure smooth operations and minimize disruptions.

Other types of risks mentioned in the options include financial risk, which pertains to potential monetary losses due to market fluctuations, compliance risk, which relates to breaches of regulations and laws that a business must adhere to, and strategic risk, which involves risks that can impact the long-term goals and direction of the organization. While these risks are essential to be aware of, they do not specifically focus on the daily operational aspects as operational risk does. Thus, operational risk is the most accurate term for risks encountered in the daily functioning of a business.