Risk Definition
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The oxford dictionary describes risk as ‘a situation involving exposure to danger’. The key word here is danger. Playing a middle man in between lending and borrowing agent is dangerous enough as it is, there are some added challenges which makes banking even more risky. The general types of risks that can be associated with banking are credit risk, market risk, operational risk, liquidity risk, business risk, reputational risk, systematic risk and moral hazard. For the benefit of the discussion a WAYS TO MITIGATE THE RISK Where does knowledge come in handy? Is experience really the key Is the organization structure good enough to withstand the or overtake the risk Can one man or woman be held responsible? Is one risk taking different form of itself? What is the key to success? Intelligence paired with technology Are all the efforts are concentrated on one risk How dependent are we on government to counter one or many 0f these risks If a customer is clever, is it good or bad? How big are we exposed? Prioritization of risks Technology Fear midpoint
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Transcript of Risk Definition
The oxford dictionary describes risk as ‘a situation involving exposure to danger’. The key word here is danger. Playing a middle man in between lending and borrowing agent is dangerous enough as it is, there are some added challenges which makes banking even more risky. The general types of risks that can be associated with banking are credit risk, market risk, operational risk, liquidity risk, business risk, reputational risk, systematic risk and moral hazard.
For the benefit of the discussion a
WAYS TO MITIGATE THE RISK
Where does knowledge come in handy?
Is experience really the key
Is the organization structure good enough to withstand the or overtake the risk
Can one man or woman be held responsible?
Is one risk taking different form of itself?
What is the key to success?
Intelligence paired with technology
Are all the efforts are concentrated on one risk
How dependent are we on government to counter one or many 0f these risks
If a customer is clever, is it good or bad?
How big are we exposed?
Prioritization of risks
Technology
Fear midpoint
![RISK ASSESSMENT. Risk Assessment Definition: “Risk…merely identifies the undesirable events that might take place during the project” [Jalote, 1998] Three.](https://static.fdocuments.us/doc/165x107/56649d235503460f949f95a6/risk-assessment-risk-assessment-definition-riskmerely-identifies-the.jpg)
