Explanation:
Operational risks are those associated with inadequate controls, human error, or other "acts of God" events. Although the question or answer does not indicate whether the teller desk losses are due to inadequate controls or human error/fraud, unexplained losses at the teller desks are most closely related to operational risk.
(Book 1, Module 1.2, LO 1.e)
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Question 16
The CEO of Risk Associates is an advisor to banks located in an energy-dependent economic region in the country. He recognizes multiple sources of risk that can impact clients. One of the more difficult risk explanations he has regarding risks relates to operational risk factors. Which of the following is most closely connected with operational risks at a retail bank?
A
Adverse movement of interest rates.
B
Unexpected credit defaults.
C
Unexplained losses at the teller desks.
D
Decreases in energy prices.
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