Banking · Operational Risk
Operational risk has acquired increasing importance in modern financial systems because complex institutions depend on technology, internal processes, people, and outsourced arrangements. Which of the following best represents operational risk?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Loss resulting from adverse movement in bond yields held in treasury
- 2Loss resulting from failed internal processes, human error, fraud, or system breakdown✓
- 3Loss resulting from policy-rate transmission in the economy
- 4Loss resulting from deterioration in sovereign credit rating alone
Correct answer
Loss resulting from failed internal processes, human error, fraud, or system breakdown
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