Barings Bank's activities in Singapore between 1992 and 1995 enabled one of its managers, Nick Leeson, to operate effectively without supervision from Barings Bank in London. Because of the absence of oversight, Leeson was able to make seemingly small gambles in the futures market and cover for his shortfalls by reporting losses as gains to Barings in London. Leeson's activities had generated losses totaling 827 million (US$1.4 billion), which led to the bankruptcy of Barings on February 26, 1995. This is an example of

Group of answer choices

A) Operational risk.

B) Market risk.

C) Regulatory risk.

D) Political risk.