Operational Risks MCQs [in Business]

  • What type of risk involves potential losses from inadequate or failed internal processes, people, and systems?
    • A) Financial Risk
    • B) Strategic Risk
    • C) Operational Risk
    • D) Compliance Risk
    • Answer: C) Operational Risk
  • Which risk pertains to losses arising from errors or failures in IT systems or technology?
    • A) Financial Risk
    • B) Operational Risk
    • C) Market Risk
    • D) Compliance Risk
    • Answer: B) Operational Risk
  • What type of operational risk is associated with fraud or misconduct by employees?
    • A) Process Risk
    • B) External Risk
    • C) People Risk
    • D) System Risk
    • Answer: C) People Risk
  • Which risk involves potential losses due to inadequate or failed business processes?
    • A) Compliance Risk
    • B) Operational Risk
    • C) Market Risk
    • D) Credit Risk
    • Answer: B) Operational Risk
  • What type of operational risk includes losses from natural disasters or other external events impacting business operations?
    • A) External Risk
    • B) System Risk
    • C) Process Risk
    • D) People Risk
    • Answer: A) External Risk
  • Which risk involves potential financial loss from ineffective risk management strategies or internal controls?
    • A) Compliance Risk
    • B) Operational Risk
    • C) Financial Risk
    • D) Strategic Risk
    • Answer: B) Operational Risk
  • What type of risk arises from failure to comply with company policies or industry standards?
    • A) Financial Risk
    • B) Operational Risk
    • C) Market Risk
    • D) Compliance Risk
    • Answer: B) Operational Risk
  • Which risk involves potential loss due to failure in supply chain management or logistics?
    • A) System Risk
    • B) Process Risk
    • C) People Risk
    • D) External Risk
    • Answer: B) Process Risk
  • What type of operational risk is associated with the failure of a business’s key technology or systems?
    • A) People Risk
    • B) System Risk
    • C) Process Risk
    • D) External Risk
    • Answer: B) System Risk
  • Which risk involves potential losses due to inadequate training or incompetence of employees?
    • A) System Risk
    • B) Compliance Risk
    • C) People Risk
    • D) Process Risk
    • Answer: C) People Risk
  • What is the risk of financial loss due to inadequate security measures or cybersecurity breaches?
    • A) Market Risk
    • B) Operational Risk
    • C) Credit Risk
    • D) Compliance Risk
    • Answer: B) Operational Risk
  • Which risk involves potential losses from failures in communication or information flow within an organization?
    • A) System Risk
    • B) Process Risk
    • C) People Risk
    • D) External Risk
    • Answer: B) Process Risk
  • What type of operational risk arises from external factors such as changes in regulation or economic conditions?
    • A) System Risk
    • B) People Risk
    • C) External Risk
    • D) Process Risk
    • Answer: C) External Risk
  • Which risk is associated with potential losses from failures in business continuity planning or disaster recovery?
    • A) People Risk
    • B) Process Risk
    • C) System Risk
    • D) External Risk
    • Answer: C) System Risk
  • What type of operational risk involves losses due to poor quality control or product defects?
    • A) Compliance Risk
    • B) Process Risk
    • C) People Risk
    • D) External Risk
    • Answer: B) Process Risk
  • Which risk involves the possibility of loss from inadequate management of employee relationships or organizational culture?
    • A) System Risk
    • B) People Risk
    • C) External Risk
    • D) Compliance Risk
    • Answer: B) People Risk
  • What is the risk of financial loss due to operational failures such as system outages or interruptions in service?
    • A) Financial Risk
    • B) Market Risk
    • C) Operational Risk
    • D) Strategic Risk
    • Answer: C) Operational Risk
  • Which type of risk includes potential losses from failures in accounting or financial reporting processes?
    • A) Compliance Risk
    • B) Operational Risk
    • C) Financial Risk
    • D) Strategic Risk
    • Answer: B) Operational Risk
  • What type of operational risk involves potential loss due to ineffective internal controls or audit processes?
    • A) System Risk
    • B) Process Risk
    • C) People Risk
    • D) Compliance Risk
    • Answer: B) Process Risk
  • Which risk involves potential losses due to failures in regulatory compliance or legal obligations?
    • A) Operational Risk
    • B) Financial Risk
    • C) Compliance Risk
    • D) Strategic Risk
    • Answer: C) Compliance Risk
  • What type of operational risk is related to potential losses from inadequate vendor or third-party management?
    • A) Process Risk
    • B) System Risk
    • C) External Risk
    • D) People Risk
    • Answer: A) Process Risk
  • Which risk involves potential losses from failures in managing business processes or procedures?
    • A) System Risk
    • B) Operational Risk
    • C) People Risk
    • D) External Risk
    • Answer: B) Operational Risk
  • What type of operational risk involves potential losses from technological disruptions or failures in IT infrastructure?
    • A) Compliance Risk
    • B) Process Risk
    • C) System Risk
    • D) People Risk
    • Answer: C) System Risk
  • Which risk includes potential losses from operational inefficiencies or ineffective operational strategies?
    • A) Market Risk
    • B) Operational Risk
    • C) Financial Risk
    • D) Compliance Risk
    • Answer: B) Operational Risk
  • What type of operational risk involves potential losses due to failures in organizational leadership or management practices?
    • A) People Risk
    • B) System Risk
    • C) Process Risk
    • D) External Risk
    • Answer: A) People Risk
  • Which risk involves potential losses from inadequate or failed risk management processes within an organization?
    • A) Financial Risk
    • B) Operational Risk
    • C) Strategic Risk
    • D) Market Risk
    • Answer: B) Operational Risk
  • What type of risk is associated with potential losses from the failure of backup systems or data recovery plans?
    • A) System Risk
    • B) People Risk
    • C) Process Risk
    • D) External Risk
    • Answer: A) System Risk
  • Which risk involves potential losses due to inadequate response to changes in operational environment or market conditions?
    • A) Operational Risk
    • B) Strategic Risk
    • C) Financial Risk
    • D) Compliance Risk
    • Answer: B) Strategic Risk
  • What type of operational risk involves losses from failures in managing operational costs or budgeting?
    • A) Financial Risk
    • B) Operational Risk
    • C) System Risk
    • D) People Risk
    • Answer: B) Operational Risk
  • Which risk involves potential losses due to failures in safeguarding sensitive or confidential information?
    • A) Compliance Risk
    • B) People Risk
    • C) Operational Risk
    • D) Financial Risk
    • Answer: C) Operational Risk
All copyrights Reserved by MCQsAnswers.com - Powered By T4Tutorials