Consider the following statements about operational risk:
1. Operational risk arises from failed internal controls.
2. Fraud and cybersecurity breaches contribute to operational risk.
3. Operational risk is unrelated to external events affecting a bank’s operations.
Which of the statements is/are correct?
1
1 only
2
2 only
3
1 and 2
4
2 and 3
5
None of the above