16-52 Which of the following is NOT a source of operational risk for an FI?
A)Capital assets.
B)Customer relationships.
C)Technology.
D)Employees.
E)Positive duration gap.

Question

Quizplus · Accepted Answer

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes or systems, human error, or external events. Positive duration gap does not relate to operational risk; it refers to the difference between the maturities of assets and liabilities, which exposes the FI to interest rate risk. Therefore, the correct answer is option E. The other options (capital assets, customer relationships, technology, and employees) are all potential sources of operational risk.

16-52 Which of the Following Is NOT a Source of Operational