Which of the following is NOT considered an operational risk?

The concept of operational risk encompasses various types of risks arising from inadequate or failed internal processes, people, and systems or from external events. In this context, market share reduction does not fall under the definition of operational risk because it primarily relates to market dynamics, competitive environment, and strategic management rather than internal operational failures.

Regulatory compliance failure, technological infrastructure failure, and fraudulent activities are all examples of operational risk. Regulatory compliance failures typically stem from not adhering to laws, regulations, or internal policies, which directly impact the organization's operations and can result in significant consequences. Technological infrastructure failures can disrupt operations and lead to losses, highlighting the importance of maintaining robust systems. Similarly, fraudulent activities represent a breakdown in operational integrity and can cause substantial financial loss and reputational damage.

Thus, market share reduction, which is more aligned with external market factors and strategic decisions, does not fit within the realm of operational risk, making it the correct response.