📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    When a bank chooses the wrong strategy or follow a

    long-term business strategy which might lead to its failure, it is called
    A Credit risk Correct Answer Incorrect Answer
    B Operational risk Correct Answer Incorrect Answer
    C Market risk Correct Answer Incorrect Answer
    D Business risk Correct Answer Incorrect Answer

    Solution

    When a bank chooses the wrong strategy or follows a long-term business strategy that may lead to its failure, it is called "Business Risk." Business risk refers to the possibility that a bank's earnings or financial position may be negatively impacted by factors that are inherent in the bank's business operations. It is a broad category of risk that includes strategic risk, reputational risk, and other risks that arise from the bank's business activities.  

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question