____ risk is the risk of losses as a result of inadequate management or controls.

Question

Quizplus · Accepted Answer

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. This includes risks associated with technology, fraud, human error, and legal and regulatory compliance. Basis risk refers to the risk of losses due to movements in the basis differential between two financial instruments. Systemic risk refers to the risk of widespread financial instability or collapse of an entire system or market. Prepayment risk refers to the risk of early repayment of a loan, which can result in losses for the lender.

____ Risk Is the Risk of Losses as a Result