Financial Risk Manager Part 1
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Which of the following risks is associated with uncertainties in demands, the cost of production, and the cost of delivery of products?
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TTanishq
Explanation:
Operational risk is the correct answer because it encompasses uncertainties related to business operations, including:
- Demand uncertainties: Fluctuations in customer demand for products/services
- Production cost uncertainties: Variations in manufacturing or service delivery costs
- Delivery cost uncertainties: Changes in transportation, logistics, and distribution expenses
These uncertainties directly impact a company's operational efficiency and profitability, making them classic examples of operational risk exposures that businesses must manage through proper risk management frameworks.
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