Which of the following statements best describes reputational risk?
A. The risk arising from adverse business decisions
B. The risk arising from negative public opinion
C. The risk arising from problems with service or product delivery
D. The risk of loss resulting from inadequate or failed internal processes, people, or systems
Answer: B
Explanation: The risk arising from negative public opinion is reputational risk. Transactional risk is the risk arising from problems with service or product delivery. The risk arising from adverse business decisions is strategic risk. The risk of loss resulting from inadequate or failed internal processes, people, or systems is operational risk.
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