When an oil company suffers severe damage to one of its oil drilling platforms,this is an example of:
A) technological risk.
B) financial risk.
C) business risk.
D) operational risk.

Question

Quizplus · Accepted Answer

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, and systems, or external events such as natural disasters or accidents. The severe damage to an oil drilling platform would fall under operational risk because it is the result of an external event that has caused a disruption in the company's operations.

When an Oil Company Suffers Severe Damage to One of Its