Operational risk is more difficult to manage than market risk and credit risk.

Question

Quizplus · Accepted Answer

Operational risk is harder to quantify and predict as it encompasses a wide range of potential events such as human error, system failures, and external events. It also involves managing the behavior and culture of an organization, which can be challenging. In comparison, market risk and credit risk are more easily quantifiable and have established risk models.

Operational Risk Is More Difficult to Manage Than Market Risk