Which of the following would be an example of operational risk?
A)A robber steals $250,000 from the bank locker.
B)An out-of-date computer system causes the bank to lose $750,000.
C)A bank is forced to sell $1,000,000 in loans,at a loss,in order to meet the needs of depositors.
D)A $500,000 loan that the bank has made has been deemed uncollectible.
E)None of the examples are of operational risk.

Question

Quizplus · Accepted Answer

Operational risk refers to the risk of loss due to inadequate or failed internal processes, people, and systems, or from external events. In this case, an out-of-date computer system causing the bank to lose $750,000 is an example of operational risk. The other options involve credit risk or theft, which are not operational risks.

Which of the Following Would Be an Example of Operational