hard · Frm Part 2 Operational Risk

In the 'Bow-Tie' model of operational risk, where would 'Vendor Oversight Failure' typically be placed?

  1. As a 'Key Risk Indicator' used to monitor the residual risk score.
  2. As a root cause (left side) that triggers the risk event.
  3. As a consequence (right side) reflecting the impact on the firm's reputation.
  4. As the 'Top Event' in the center, representing the moment control is lost.

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