Money and Banking

Review and analyze at least FIVE (5) risk(s) faced by the selected Banks

Credit Risk

1. Credit Risk is the risk of loss if a borrower or counterparty in a transaction fails to meet its obligations.

2. Losses in principal or income arising from the failure of an obligor or counterparty to perform their contractual obligations in accordance with agreed terms.

Operational Risk

1. Operational Risk loss is the risk of loss resulting from inadequate of failed internal processes, people and systems or from external events which also includes IT and legal risks.

2. Losses due to failed internal processes, people or systems or from external events.

Market Risk

1. Market Risk is the risk of loss in financial instruments or the balance sheet due to adverse movements in market factors such as interest and exchange rates, prices, spreads, volatilities, and/or correlations.

2. Losses or adverse impacts on earnings or capital from changes in the level of volatility of market rates or prices such as interest rates, foreign exchange rates, commodity prices and equity prices.

Liquidity Risk

1. Liquidity Risk is the risk of loss resulting from the unavailability of sufficient funds to fulfill financial commitments, including customer’ liquidity needs, as they fall due. Liquidity Risk also includes the risk of not being able to liquidate assets in a timely manner

2. Risk that the Group will not be able to meet both expected and unexpected current and future cash flow and collateral needs effectively without affecting either daily operations or the financial condition of the Group.

Regulatory Risk

1. Change in regulations