n NISM Certifications
VII NISM Series VII
Medium

_______ risk arises when a client denies a matched order.

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

Options

  1. A

    Credit

  2. B

    Regulatory

  3. C

    Market

  4. Operational

    Correct answer

Why this is the answer

Operational risk refers to monetary losses from failed internal processes, manual errors, system errors, or external events. In stock broking, this includes risks like denial of matched orders by clients, errors in handling client assets, regulatory non-compliance, or sudden bank closures.

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