Answer (C) is correct . Operational risks are the risks related to the enterprise’s ongoing, everyday operations. Operational risk is the risk of loss from inadequate or failed internal processes, people, and systems. These failures can relate to human resources (e.g., inadequate hiring or training practices), business processes (poor internal controls), product failure (customer ill will, lawsuits), occupational safety and health incidents, environmental damage, and business continuity (power outages, natural disasters).
Answer (A) is incorrect because Hazard risks are risks that are insurable. Examples include natural disasters, the incapacity or death of senior officers, sabotage, and terrorism.
Answer (B) is incorrect because Financial risks encompass interest-rate risk, exchange-rate risk, commodity risk, credit risk, liquidity risk, and market risk.
Answer (D) is incorrect because Strategic risks include global economic risk, political risk, and regulatory risk.
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