Exercise 2 JoyCo is a bank that believes it has fully hedged against economic risk, in that however the economy moves, this does not directly impact the value of its invested assets. JoyCo outsources the administration of its customer information to AdminCo. A downturn in the economy results in financial troubles at AdminCo, which results in turnover and chaos at AdminCo, and ultimately results in AdminCo's failure. It takes JoyCo five months until it can find a replacement for AdminCo, during which JoyCo must perform its customer administrative functions manually, which is expensive, slow and inaccurate. JoyCo's reputation, as a result, is damaged, and it loses 20% of expected revenues. Identify the most appropriate risk category/sub-category below that represents the source of risk from the perspective of JoyCo. A. Financial - Market B. Strategic - Competitor C. Operational - Human Resources D. Strategic - Supplier E. Financial - Economic