Operational risk sources can lead to the following costs for the FI:
A)direct costs, indirect costs and opportunity costs
B)direct costs and indirect costs only
C)direct costs and opportunity costs only
D)indirect costs and opportunity costs only

Question

Quizplus · Accepted Answer

Operational risk sources can result in direct costs (such as expenses related to litigation or compensation), indirect costs (such as loss of reputation or customer trust) and opportunity costs (such as missed business opportunities). Therefore, option A is the correct choice.

Operational Risk Sources Can Lead to the Following Costs for the FI