Advantages And Disadvantages Of Risks In Banks

Many types of risk are created – risk to the project, to the organization, to the employees involved and to the individuals supporting the change.

impact of the identified risks to the organization based on key business drivers (loss of life, loss of

Risk – A risk in a health and social care setting is when there is a strong possibility of harm occurring through a hazard.

Risk refers to any potential problems that would threaten the likelihood of success for or any project. These potential problems might prevent a project from achieving some or all of its objectives by increasing time and cost. Risk factors can even

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Risk #4: Lack of clarity - The lack of clear and concise goals and or confusion about the goal of the scope.

Within business, there will always be operational risks to consider. "Operating risk is the basic

Risk in relation to functions- HR management, economic operations, OHS, supply chain, local governance and compliance issues.

Due to employee theft, a corporation spends more than anticipated buying new tools



The risks listed above contain examples of all the categories in Brown’s risk taxonomy except:

Liquidity risk refers to the probability that a bank may not have sufficient funds with which to meet the demands for cash (or to make transfers on the part of customers). In addition, a bank is insolvent (has negative net worth) only if its total assets are insufficient to meet total liabilities. (bankofengland)

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

The instances of dangerous type of risk taking according to the standards of SEC and/or CFTC can be anticipated in troubled banks. Bruche and Lobet (2011) and Diamond and Rajan (2011) claim that

* Operational Risk: It includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management and repair of equipments. The risk involved has low

Today, banks faced multiple risks inherent to their activity, whether they are financial or operational.

participants. Rather it should accept those risks that are uniquely part of the array of bank’s services. 1.2.3 In every financial institution, risk management activities broadly take place simultaneously at following different hierarchy levels. a) Strategic level: It encompasses risk management functions performed by senior management and BOD. For instance definition of risks, ascertaining institutions risk appetite, formulating strategy and policies for managing risks and establish adequate systems and controls to ensure that overall risk