US CMA Part 2 · Chapter 7 · Question 13 of 15
Which of the following is an example of operational risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Losses caused by employees repeatedly keying incorrect prices into the billing system
Explanation
Operational risk is the risk of loss from inadequate or failed internal processes, people and systems, or from external events. Data entry errors are a people and process failure. Currency and interest rate movements are financial (market) risks, and a competitor's product launch is a strategic risk.
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