An Interruption in Business Productivity

B.

Operation risks encompass any potential interruption in business.

Operational risks are those risk that are associated with the day-to-day operations of the enterprise.

They are generally more detailed as compared to strategic risks.

It is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.

Some sub-categories of operational risks include: -> Organizational or management related risks -> Information security risks Production, process, and productivity risks.

-> Profitability operational risks -> Business interruption risks -> Project activity risks -> Contract and product liability risks -> Incidents and crisis -> Illegal or malicious acts Incorrect Answers: A: Reporting risks are those occurrences which prevent accurate and timely reporting.

C: Legal risks are dealing with those events which can deteriorate the company's legal status.

Legal compliance is the process or procedure to ensure that an organization follows relevant laws, regulations and business rules.

The definition of legal compliance, especially in the context of corporate legal departments, has recently been expanded to include understanding and adhering to ethical codes within entire professions, as well.

Hence legal and compliance risk has the potential to deteriorate company's legal or regulatory status.

D: Strategic risks have potential which breaks in obtaining strategic objectives.

Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.

The interruption of business productivity is a significant risk that can impact the operations of an organization. This risk can result in a loss of revenue, productivity, and reputation. The risk can be classified as operational risk.

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. It encompasses all operational aspects of an organization, including its people, processes, and technology. Interruption of business productivity can result from system failures, natural disasters, cyber-attacks, or other external events.

Reporting risk refers to the risk that a company's financial statements or other reports may be incorrect or misleading. This risk is associated with financial reporting and is typically managed by the organization's finance and accounting departments.

Legal risk refers to the risk that an organization may face as a result of legal action taken against it. This risk is associated with compliance with laws and regulations and is typically managed by the organization's legal department.

Strategic risk refers to the risk of loss resulting from a failure to implement effective business strategies or from changes in the business environment. This risk is associated with the organization's overall strategy and is typically managed by senior management.

In conclusion, interruption of business productivity is considered an operational risk. It is important for organizations to identify, assess, and manage this risk to minimize the impact of interruptions on their operations.