Which type of risk may arise from accountability issues within a property management team?

Operational risk is particularly relevant in the context of accountability issues within a property management team because it encompasses risks that arise from inadequate or failed internal processes, systems, or practices. When accountability is compromised, it can lead to inefficient operations, mismanagement of resources, failure to meet regulatory requirements, and ultimately, negative impacts on property performance.

For instance, if property management staff do not execute their responsibilities effectively due to accountability issues, it might result in tenant dissatisfaction, neglect of property maintenance, or financial mismanagement. These failures directly affect the operational performance of the property and can lead to economic losses or damages that the property owner may have to bear.

In contrast, market risk involves changes in the broader market that can influence real estate values, credit risk pertains to the potential of default on rental or mortgage payments, and investment risk relates to the variability of returns on real estate investments. These types of risks are distinct from the internal accountability issues that characterize operational risk.