Which one of the following four statements correctly identifies the Basel II Accord's definition of...

Operational risk is all the risk that is not captured by market and credit risks.

Operational risk is the risk of loss resulting from inadequate or failed processes, people and systems or from external events.

Operational risk is a risk arising from execution of a company's business functions.

Operational risk is a form of risk that summarizes the risks a company or firm undertakes when it attempts to operate within a given field or industry.