21-19 Research suggests that the total risk exposure of a financial services organization could actually increase if there is excessive product expansion in some nonbank lines.

Question

Quizplus · Accepted Answer

This statement is true. Research has found that excessive product expansion in nonbank lines can lead to increased risk exposure for financial services organizations. This is due to a variety of reasons, including increased complexity and difficulty in effectively managing multiple product lines, increased regulatory compliance requirements, and potential conflict of interest among business units. Therefore, it is important for organizations to carefully consider the potential risks before expanding into new product lines.

21-19 Research Suggests That the Total Risk Exposure of a Financial