What can be said about the impact of operational risk on both market risk and credit risk?
A. Operational risk has no impact on market risk and credit risk.
B. Operational risk has no impact on market risk but has impact on credit risk.
C. Operational risk has impact on market risk but no impact on credit risk.
D. Operational risk has impact on market risk and credit risk.
Answer:D
Operational risk can lead to market or credit risk. Operational errors in the settlement process may result in credit risk and market risk.