The BIS definition: "the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events," encompasses which of the following risks?

Question

Quizplus · Accepted Answer

The BIS definition is describing operational risk, which includes the risk of loss from inadequate internal processes, people, and systems, as well as from external events. Technology risk is a subcategory of operational risk, so option B is the best choice. Credit risk and liquidity risk are different types of risks that are not included in this definition. Market risk and sovereign risk are also not included.

The BIS Definition: "The Risk of Loss Resulting from Inadequate