The Garic State Bank of New Orleans has been under water for three weeks since hurricane Katrina hit the state.The lobby is full of mud and other debris.Many of the valuables stored in the bank's safety deposit boxes have been ruined.John Garic,the President and CEO of the bank,has been working night and day to reopen the bank.What type of risk has John been dealing with?

Question

Quizplus · Accepted Answer

John Garic has been dealing with operational risk, which is the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. The damage caused by hurricane Katrina has affected the bank's operations, including the safety of the valuables stored in the safety deposit boxes, which have been ruined due to flooding. Additionally, the debris in the lobby has made it difficult to reopen the bank.

The Garic State Bank of New Orleans Has Been Under