Assume that new regulations proposed by the government could change the way a business does its day to day activities in order to be compliant with the new regulations. In this context, the business is potentially exposed to which of the following risks ?

Question

BlackTom AI · Accepted Answer

When a government introduces new regulations that could alter how a business operates on a day-to-day basis, multiple facets of risk can be affected.
Option 1: Legal risk. Changes in regulation can create new legal responsibilities or potential liabilities if the business fails to comply, so assessing legal exposure is essential.
Option 2: Operational risk. Day-to-day activities may need to be redesigned to meet the new rules, introducing risks related to processes, systems, and human execution.
Option 3: Compliance risk. The core purpose of regulations is to ensure adherence to rules; failing to implement required controls or reporting could lead to compliance failures.
Option 4: All of the above. Since regulatory changes can simultaneously impact legal obligations, operational processes, and formal compliance requirements, the combined risk is not limited to a single category.
Thus, each of the individual risk categories presents a potential concern, and taken together they describe the full spectrum of exposure a business could face under new regulations.

Assume that new regulations proposed by the government could change the way a business does its day to day activities in order to be compliant with the new regulations. In this context, the business is potentially exposed to which of the following risks ?单项选择题

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