a company works with a large supplier of metal fasteners that are used to build many of its products. the…

a company works with a large supplier of metal fasteners that are used to build many of its products. the supplier raises its prices significantly and the company has to figure out if they will continue using that supplier and, if so, how they are going to account for the increase in supply prices. from the scenario above, which type of risk that the company is facing? a compliance risk b strategic risk c reputational risk d operational risk

a company works with a large supplier of metal fasteners that are used to build many of its products. the supplier raises its prices significantly and the company has to figure out if they will continue using that supplier and, if so, how they are going to account for the increase in supply prices. from the scenario above, which type of risk that the company is facing? a compliance risk b strategic risk c reputational risk d operational risk

Answer

Brief Explanations:

Operational risk involves day - to - day business operations. A supplier raising prices can disrupt the company's production and cost - management processes which are part of operations. Compliance risk relates to adhering to laws and regulations, strategic risk is about long - term goals and reputation risk is about public perception. Here, the price increase by the supplier affects the company's operational aspects directly.

Answer:

D. operational risk