n NISM Certifications
VII NISM Series VII
Medium

Operational risk is the risk of monetary loss resulting from inadequate or failed:

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    External events

  2. B

    Internal processes

  3. C

    Manual and systems error

  4. All of the above

    Correct answer

Why this is the answer

Operational risk arises from failures in processes, systems, human error, or external events.

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NISM Series VII Mock Test 5