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All the following are operational risk loss events, except:

1. An individual shows up at a branch presenting a check written by a customer for an amount substantially exceeding the customers low checking account balance. When the bank calls the customer to ask him for the funds, the phone is disconnected and the bank cannot recover the funds.
2. A bank, acting as a trustee for a loan pool, receives less than the projected funds due to delayed repayment of certain loans.
3. During an adverse market movement, the computer network system becomes overwhelmed, and only intermittent pricing information is available to the banks trading desk, leading to large losses as traders become unable to alter their hedges in response to falling prices.
4. A loan officer inaccurately enters client financial information into the banks proprietary credit risk model.

[Lecture 13] Which of the following is an example of an operational risk loss by Firm A?

1. After a surprise announcement by the central bank that interest rates would increase, bond prices fall, and Firm A incurs a significant loss on its bond portfolio.
2. The data capture system of Firm A fails to capture the correct market rates causing derivative trades to be done at incorrect prices, leading to significant losses.
3. As a result of an increase in commodity prices, the share price of a company that Firm A invested in falls significantly causing major investment losses.
4. A counterparty of Firm A fails to settle their debt to Firm A, and in doing this, they are in breach of a legal agreement to pay for services rendered.

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