The risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations is called
Correct answer: A. Operating Risk
- A. Operating Risk
- B. Financial Risk
- C. Debt Risk
- D. Business Risk
Explanation
Operating risk in this context refers to losses caused by failures in internal processes, policies, systems, or business operations. Financial risk instead arises from borrowing and the obligation to meet debt payments.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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