The financial system represents the bloodstream of every modern economy. It is the carrier of economic growth and development of each country. A stable financial system is a precondition for economic growth and development, and preserving financial stability and increasing the resilience of the banking system is of public importance. In Croatia, banks are the largest and most important part of the financial system and play an important role in the allocation from savings funds to funds for financing investments of business entities in the economy. Risk is the probability of occurrence of a harmful event in the future, banks are exposed to the full range of risks in their operations, one of them is operational risk. The operational risk is inherent to banks and is present in all activities undertaken by the bank, it is classified in one of the four materially significant risk categories in the bank. The causes of operational risk can be found in inadequate and inappropriate internal procedures, inappropriate actions of people, inadequate banking system or due to external events. It can result in large financial losses and can have a major impact on the bank stability, which can affect the country’s entire economy. Preserving financial stability and increasing the resilience of the banking system is one of the fundamental functions of the central bank, through the function of regulatory supervision of banks. Therefore, active risk management is one of the main tasks of banks. In order to effectively identify, measure and manage risks, the bank establishes a comprehensive risk management system that is continuously improved and developed.