The risk that arises from chance of loss as a result of inadequate internal bank processes is called:

Question

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Operational risk is the risk of loss that results from inadequate or failed internal processes, people or systems, or from external events. This includes risks related to fraud, human error, system failures, and legal or regulatory non-compliance. The other options refer to different types of risks; default risk refers to the risk of non-payment by counterparties, interest rate risk refers to the risk of changes in interest rates affecting bank profitability, and market risk refers to the risk of losses from changes in market prices or values.

The Risk That Arises from Chance of Loss as a Result