Consider the following examples of risk:
i.A corporation is unable to issue bonds because its credit rating is too low.ii.A U.S.auto manufacturer tries to market a car in Mexico.The car does not sell because the Spanish translation of its name means "it doesn't go."
iii.An employee receives insufficient training in how to use specialized software.iv.Due to employee theft, a corporation spends more money than anticipated buying new tools.Which pair of risks belongs to the same category in Brown's risk taxonomy?
A)I and II
B)II and III
C)I and III
D)I and IV

Question

Quizplus · Accepted Answer

Both of these risks are categorized as "Operational Risks" in Brown's risk taxonomy as they relate to internal processes and systems within an organization. Risk I is caused by the corporation's inability to manage its credit rating, while Risk IV is caused by employee theft impacting the company's resources.

Consider the Following Examples of Risk