n NISM Certifications
VII NISM Series VII
Medium

For a stock broker, operational risk includes counter-party risks like ________.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Non-delivery of scrip

  2. B

    Trading errors

  3. Both Non-delivery of scrip and Trading errors

    Correct answer

Why this is the answer

Operational risks stem from inadequate processes or external failures. For brokers, this includes non-delivery of scrips, non-payment issues, trading errors, and banking disruptions.

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