C和D可以展开讲一下吗

问题如下：

A risk analyst at a large investment bank is classifying various loss events experienced by the bank into the categories of operational risk identified by the Basel Committee. The analyst studies the case of a trader at the bank who unintentionally increased the size of a position in the bank’s account above its VaR limit, and the bank incurred a loss when unwinding the position. Under which of the following Basel operational risk categories would this event most likely fall?

选项：

A.Internal fraud B.External fraud C.Clients, products, and business practices D.Execution, delivery, and process management

解释：

C is correct. The clients, products, and business practices category includes improper trading activities on the bank’s account.

A is incorrect. The internal fraud category includes acts of a type intended to defraud, misappropriate property, or circumvent regulations, the law, or company policy involving at least one internal party. Examples include intentional misreporting of positions, employee theft, and insider trading on an employee’s own account. Unauthorized trading activities on the bank’s account are more appropriate to categorize under clients, products, and business practices.

B is incorrect. The external fraud category includes acts by a third party of a type intended to defraud, misappropriate property, or circumvent the law.

D is incorrect. The execution, delivery, and process management category includes failed transaction processing or process management, and disputes with trade counterparties and vendors.

Learning Objective: Describe the different categories of operational risk and explain how each type of risk can arise.

Reference: Global Association of Risk Professionals, Valuation and Risk Models (New York, NY: Pearson, 2023). Chapter 7. Operational Risk [VRM–7]