From an operational risk perspective, the risks that are unlikely to jeopardize the future of the firm are:
  A. low-frequency, high-severity risks.
  B. high-frequency, low-severity risks.
  C. risks related to business practices.
  D. risks related to internal fraud.
  Answer:B
  Due to their predictable nature and small size, the risks that are unlikely to jeopardize the future of the firm are high-frequency, low-severity events. Note that risks related to fraud and business practices tend to create the largest unexpected losses and can therefore jeopardize the firm.