Examples of operational risk include Multiple Choice restrictions imposed on the maximum ownership share by foreigners, mandatory transfer of ownership to local firms over a certain period of time (fade-out requirements), and the nationalization of local operations of MNCs. none of the options the unexpected imposition of capital controls, inbound or outbound, and withholding taxes on dividend and interest payments. unexpected changes in environmental policies, sourcing/local content requirements, minimum wage law, and restriction on access to local credit facilities.

unexpected changes in environmental policies, sourcing/local content requirements, minimum wage law, and restriction on access to local credit facilities.

Explanation:

Risk can be defined as the probability that exposure to a hazard will lead to a negative consequence.

Also, risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.

An operational risk can be defined as a type of risk an organization or company faces due to internal actions of its employees, systems, procedures, processes, policies, etc.

Examples of operational risk include unexpected changes in environmental policies, sourcing/local content requirements, minimum wage law, and restriction on access to local credit facilities.

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