Final answer:
Loss exposure is the chance of financial loss, and it can be classified into operational, financial, and strategic factors.
Step-by-step explanation:
Loss exposure refers to the chance of financial loss. There are three factors used to classify loss exposure, which are operational, financial, and strategic. Operational loss exposure refers to the risks associated with the day-to-day operations of a business. For example, this could include the risk of equipment failure, supply chain disruptions, or employee errors. Financial loss exposure is related to financial risks that a business may face. This can include risks such as changes in interest rates, currency exchange rates, or credit defaults. Strategic loss exposure refers to risks that are related to the strategic decisions and actions of a business. This can include risks such as entering new markets, developing new products, or implementing new technologies.