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1 FINANCE MCQS

The risk that occurs due to a technology system failure is called:

  • System risk
  • Technology risk
  • Operational risk
  • Support risk
Correct Answer: C. Operational risk

Detailed Explanation

Operational risk refers to the potential loss caused by failures in internal processes, systems, or technology. It includes risks from system breakdowns, human errors, or cyberattacks that can disrupt normal business operations. This type of risk is common in financial institutions that rely heavily on technology.

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