Which type of risk is the most difficult to quantify?
A) Credit risk
B) Liquidity risk
C) Legal risk
D) Operating risk
E) Market risk

Question

Quizplus · Accepted Answer

Legal risk is the most difficult to quantify as it involves the potential for losses due to lawsuits, regulatory actions, or other legal challenges. This type of risk can be unpredictable and difficult to measure, as it depends on factors such as changes in laws and regulations, court decisions, and legal disputes that are outside of the control of the organization. While the other types of risks listed also involve uncertainties, they are typically more quantifiable through metrics and analysis.

Which Type of Risk Is the Most Difficult to Quantify