Examples of Operational Risk Include

question 73

Multiple Choice

Examples of operational risk include

• A)the unexpected imposition of capital controls,inbound or outbound,and withholding taxes on dividend and interest payments.
• B)unexpected changes in environmental policies,sourcing/local content requirements,minimum wage law,and restriction on access to local credit facilities.
• C)restrictions imposed on the maximum ownership share by foreigners,mandatory transfer of ownership to local firms over a certain period of time (fade-out requirements),and the nationalization of local operations of MNCs.
• D)none of the options

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Definitions:

Styrene

An organic compound with the chemical formula C8H8, a monomer used in the production of polystyrene plastics and synthetic rubber.

π Electrons

Electrons present in the pi bonds of a molecule which contribute to the molecule's chemical properties.

Aromatic

Refers to a class of compounds that contain a benzene ring or a similar structure with delocalized electrons that follow Huckel's rule.

AntiAromatic

Compounds that have conjugated pi electron systems with 4n pi electrons, which destabilize the molecule, making it less stable than if the pi electrons were localized.