7.

Which of the following is most accurate regarding the risks faced by financial institutions?

Select one:

a. Operational risk is the risk incurred by an FI when its technological investments do not produce anticipated cost savings

b. Technological risk is the risk that existing technology or support systems may malfunction or break down

c. Country or sovereign risk is the risk that repayments from foreign borrowers may be interrupted because of interference from foreign governments

d. Credit Risk is the risk that an FI may not have enough capital to offset a sudden decline in the value of its liabilities relative to its assets

e. All of the answers are correct