Q.63 Patricia Rice, FRM, is evaluating the risk management of Bright Technologies. She is asked to categorize the following events into various types of risk. Identify each numbered event as a credit risk, market risk, business risk, operational risk, and legal risk.

1. A delayed launch of the latest model of an internet connectivity gadget leads to an inventory pileup of the older product and a USD 100 million write-off of excess inventory.
2. Insufficient training leads to misuse of the check clearing system
3. Credit spreads widen following bankruptcies
4. Swap seller does not have the resources required to honor a contract
5. Credit swaps cannot be netted because they originated in Canada and Sydney