medium · Frm Part 2 Operational Risk
A bank discovers that its critical SaaS vendor for trade reconciliation uses the same underlying cloud infrastructure provider as the bank's own treasury system.
This scenario is a classic example of which type of risk?
- Legal finality risk.
- Step-in risk.
- Replacement risk.
- Fourth-party concentration risk.
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More Frm Part 2 Operational Risk practice
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