Answer: 1: operational risk. 2: market risk. 3: credit risk. 4: legal risk

## Explanation Let's analyze each event: 1. **Insufficient training leads to misuse of order management system** - This is **operational risk** because it stems from internal process failures, human errors, or inadequate systems/training. 2. **Credit spreads widen following recent bankruptcies** - This is **market risk** because credit spread movements affect the market value of credit-sensitive instruments, representing price volatility in financial markets. 3. **Option writer does not have the resources required to honor a contract** - This is **credit risk** because it involves the counterparty's inability to fulfill contractual obligations (default risk). 4. **Credit swaps with counterparty cannot be netted because they originated in multiple jurisdictions** - This is **legal risk** because it involves legal/regulatory constraints that prevent effective risk mitigation through netting arrangements. Therefore, the correct matching is: - 1: operational risk - 2: market risk - 3: credit risk - 4: legal risk This corresponds to **Option C**.

Author: LeetQuiz Editorial Team