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Question 3 Which of the following is not an example of operational risk changes in market interest rates internal fraud hacking into the company's systems human error

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Question 3
Which of the following is not an example of operational risk
changes in market interest rates
internal fraud
hacking into the company's systems
human error

Question 3 Which of the following is not an example of operational risk changes in market interest rates internal fraud hacking into the company's systems human error

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PaulaElite · Tutor for 8 years

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A. charges in market interest rates

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## Step1: <br />Identity what operational risk means. Operational risk is the chance of a loss due to the day-to-day operations of an organization going awry. Basically, it comprises risks originating from breakdowns in operational processes, erratic human execution or system failures, which includes fraud, data breaches, and malfunction of technological infrastructure, etc.<br /><br />## Step2: <br />Analyzing the first option "changes in market interest rates". Changes in market interest rates are a type of financial risk, more specifically a type of market risk where the risk emerges from fluctuations in values of either the investor's debt, equity, or derivative financial instrument.<br /><br />## Step3:<br />Evaluate the rest of the also options, including "internal fraud", "hacking into the company's systems", and "human error". These are all clear examples of operational risks as defined in the context, involving elements like failed internal procedure, systems, or human makes mistakes which can affect the continued functioning of the organization.
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