GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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overall system failures, product distribution failures
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robbery, embezzlement, computer crimes, vandalism, job related illness and injuries
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weather threats, diseases, accidents
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stands for Strengths, Weaknesses, Opportunities and Threats Analysis a useful tool in the decision making process in various situations for businesses and organizations
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involves the statement of a problem and all of the contributing factors
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Detailed explanation-1: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.
Detailed explanation-2: -Operational risk is the risk of loss resulting from ineffective or failed internal processes, people, systems, or external events that can disrupt the flow of business operations. The losses can be directly or indirectly financial.
Detailed explanation-3: -Operational risk can occur at every level in an organisation. The type of risks associated with business and operation risk relate to: • business interruption • errors or omissions by employees • product failure • health and safety • failure of IT systems • fraud • loss of key people • litigation • loss of suppliers.
Detailed explanation-4: -Overview: The International Association of Insurance Supervisors (IAIS) defines “operational risk” as the risk of adverse change in the value of capital resources resulting from operational events such as inadequacy or failure of internal systems, personnel, procedures, or controls, as well as external events.