Economics · Banking & Risk Management
During the year-end closing on March 31, 2025, a bank's CBS is programmed to automatically calculate the Provision for Non-Performing Assets based on the number of days an account has been overdue. An account with a balance of 1,000,000 has been overdue for 95 days, but the system fails to categorize it as Sub-standard because a manual 'stop-flag' was placed on the account by a user. What is the primary risk associated with this computerized accounting scenario?
- 1Liquidity Risk
- 2Market Risk
- 3Operational Risk leading to Regulatory Non-compliance✓
- 4Credit Risk
Correct answer
Operational Risk leading to Regulatory Non-compliance
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