n NISM Certifications
VII NISM Series VII
Medium

For a stock broker, operational risk includes ________.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Non-payment by clients

  2. B

    Denial of matched order by clients

  3. C

    Trading errors

  4. All of the above

    Correct answer

Why this is the answer

Operational risk arises from internal failures or external factors. For brokers, this includes non-payment, non-delivery, order mismatches, and trading errors.

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