Operational Risk Is the Risk That the Borrower Is Unable

question 45

True/False

Operational risk is the risk that the borrower is unable or unwilling to fulfil the terms promised under the loan contract.

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Definitions:

Return On Investment

An evaluation tool for gauging the productivity or returns of an investment, achieved by dividing the net earnings by the investment's expense.

Investment Opportunity

An economic or financial situation in which one might invest money with the expectation of achieving a positive return.

Combined Turnover

The total revenue generated from all sources by a company or group of companies, without deducting any costs or losses.

Investment Opportunity

A potential venture or avenue through which an investor can put money into assets or projects expecting a favorable financial return.