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Answer: Exogenous risk, which refers to unforeseen risks that disrupt global or national stability, such as natural disasters or sudden conflicts.
The correct answer is **C** because exogenous risks are sudden and unanticipated events that can significantly impact global or national stability. Natural disasters, such as earthquakes or hurricanes, are prime examples of exogenous risks, as they occur without warning and can disrupt economic and geopolitical conditions. In contrast, event risks (Option A) are tied to specific dates, and thematic risks (Option B) evolve gradually over time.
Author: LeetQuiz Editorial Team
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Natural disasters are an example of:
A
Event risk, which pertains to risks associated with predetermined dates such as elections or legislative changes.
B
Thematic risk, which involves risks that develop and intensify over time, such as climate change or geopolitical shifts.
C
Exogenous risk, which refers to unforeseen risks that disrupt global or national stability, such as natural disasters or sudden conflicts.
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