An error by a third party service provider results in a loss to a client that the bank has to make up. Such as loss would be categorized per Basel IIoperational risk categories as:

An error by a third party service provider results in a loss to a client that the bank has to make up. Such as loss would be categorized per Basel IIoperational risk categories as:
A . Execution delivery and process management
B . Outsourcing loss
C . Business disruption and process failure
D . Abnormal loss

View Answer

Answer: A

Explanation:

Choice ‘a’ is the correct answer. Refer to the detailed loss event type classification under Basel II (see Annex 9 of the accord). You should know the exact names of all loss event types, and examples of each.