, QUESTION 1 Evaluate the accuracy of each of the
following statements. Indicate whether you consider the
statement accurate (true) or not (false) and provide a full
motivation for your answer. ): True or False: Operational
risk only arises from internal factors such as employees
and processes, and external factors do not contribute to
operational risk. True or False: The Basel Accord requires
financial institutions to maintain a risk management
framework that includes identifying, assessing, monitoring,
and controlling operational risks. True or False: Business
continuity planning (BCP) is not necessary for managing
operational risk since most risks can be controlled through
internal policies. True or False: One of the key components
of operational risk is system risk, which includes IT failures,
cybersecurity breaches, and outdated technology affecting
business operations.
QUESTION 1: Evaluating the Accuracy of Statements
on Operational Risk
1. Statement: Operational risk only arises from
internal factors such as employees and processes,
and external factors do not contribute to operational
risk.
Answer: False
Motivation: Operational risk arises from both
following statements. Indicate whether you consider the
statement accurate (true) or not (false) and provide a full
motivation for your answer. ): True or False: Operational
risk only arises from internal factors such as employees
and processes, and external factors do not contribute to
operational risk. True or False: The Basel Accord requires
financial institutions to maintain a risk management
framework that includes identifying, assessing, monitoring,
and controlling operational risks. True or False: Business
continuity planning (BCP) is not necessary for managing
operational risk since most risks can be controlled through
internal policies. True or False: One of the key components
of operational risk is system risk, which includes IT failures,
cybersecurity breaches, and outdated technology affecting
business operations.
QUESTION 1: Evaluating the Accuracy of Statements
on Operational Risk
1. Statement: Operational risk only arises from
internal factors such as employees and processes,
and external factors do not contribute to operational
risk.
Answer: False
Motivation: Operational risk arises from both
