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Problems within the business is called _____ risk.

1) financial
2) compliance
3) operational
4) strategic

1 Answer

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Final answer:

Problems within the business are called operational risk. This kind of risk arises from internal procedures, systems, and policies that can cause disruptions in business operations.

Step-by-step explanation:

Problems within the business are referred to as operational risk. This encompasses the risks arising from the internal procedures, systems, and policies of a business that can disrupt its operations. Operational risk is separate from other types of risks like financial risk, which deals with the management of financial assets and the considerations important to investors in the financial market, or compliance risk, which deals with adherence to laws and regulations. Likewise, strategic risk relates to high-level business decisions that affect the entity's direction.

Operational risk is an important consideration for businesses because it directly impacts their ability to perform effectively. While an economic downturn, natural disaster, or large-scale unemployment can present economic risks that are largely outside of an individual's control, operational risk can often be managed and mitigated within the organization's own strategies and processes.

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