Operational Risk Refers to the Risk Which Arises from the Uncertainty

question 12

Multiple Choice

Operational risk refers to the risk which arises from the uncertainty about:

• A) the host's country's policies affecting the local operations of an MNC.
• B) the host's country's policy regarding ownership and control of local operations.
• C) cross-border flows of capital, payment, know-how, and the like.
• D) None of these.

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Definitions:

Specialization

The process of focusing on a specific area of study or work, developing expertise in a particular field.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or processes.

Organizational Behaviour

The study of how people interact within groups in a work environment to understand human aspects in workplaces.

Management

The process of effectively organizing, planning, leading, and controlling resources to achieve organizational objectives.