Which of the following would be an example of crime risk?
A)A bank manager embezzles $1,000,000 from the bank.
B)A bank that loses $500,000 from trading in foreign currencies.
C)A $1,000,000 loan given to a business on which no interest and principal has been collected in 2 years.
D)A bank manager predicts that interest rates will rise.However,interest rates fall causing the bank 's net income to fall by $250,000.
E)All of the options are examples of crime risk.

Question

Quizplus · Accepted Answer

Crime risk refers to the risk of financial loss due to criminal activities such as theft, fraud, embezzlement, etc. In option A, a bank manager embezzling $1,000,000 from the bank represents a clear example of crime risk. The other options are related to different types of financial risks such as market risk, credit risk, and interest rate risk.

Which of the Following Would Be an Example of Crime