BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Those are risks that do not affect the normal day-to-day functioning of an organization
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The risk due to inadequate or erroneous specified internal processes, human factors, errors
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Positive non-financial impact on banks
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All of the above statements are correct
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Detailed explanation-1: -With firms, operational risks include system errors, human errors, improper management, quality issues, and other operation-related errors.
Detailed explanation-2: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.
Detailed explanation-3: -Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can trigger operational risk.
Detailed explanation-4: -Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.