US CMA Part 2 · Chapter 7 · Question 2 of 15
A traditional film camera manufacturer loses most of its market after customers switch to smartphone photography. This is primarily an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Strategic risk
Explanation
Strategic risk arises from the choice and execution of strategy and from shifts in the business environment, such as technological change, competitor actions or changing customer preferences. Operational risk relates to failures of internal processes, people and systems, and credit risk to counterparties failing to pay.
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