PRMIA PRM 8008 Question # 85 Topic 9 Discussion

Operational risk as defined in Basel II specifically excludes strategic and reputational risk. Therefore Choice 'd' is the correct answer.

Note that Basel II defines operational risk as follows:

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.