Why the answer is compliance risk, the answer should be operational risk because the operational risk is concerned with failures of humans, system and compliance risk is concerned with laws and regulations and combining trading desk and back-office is system related, isn’t it?
Share
Hello,
The compliance department ensures that a business adheres to external rules and internal controls. In the financial services sector, compliance departments work to meet key regulatory objectives to protect investors and ensure that markets are fair, efficient and transparent. so of both trading desk and back office Operations are combined…there is a chance of compliance mishap.
Option C is incorrect because Operational risk is beyond control of a organization (mentioned above) so the above mingle of trading desk and back office is a controllable affair.
Hope this helps!