What is the effect on the financial institution as a result of the following risk exposure:

Market value of PG&E Corporation fell from $25 billion to below $4 billion after more than 750 lawsuits were leveled against the company for potentially causing the largest forest fires in California in 2019. The company filed for bankruptcy causing many creditors including financial institutions to lose their investment.

a. Exposure effect

b. Liquidation effect

c. Financing effect

d. Insurance effect

e. Net claim effect