A petroleum refinery in the Gulf region is forced to shut down for several months because of hurricane damage. This is an example of
A) market risk.
B) speculation.
C) event risk.
D) business risk.

Question

Quizplus · Accepted Answer

This is an example of event risk, as it involves an unexpected event (hurricane damage) that directly impacts the operation of the petroleum refinery, leading to its shutdown. Event risk refers to the risk that an event will occur that leads to a significant loss for an entity.

A Petroleum Refinery in the Gulf Region Is Forced to Shut