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Explain the risks that banks expose themselves to in their day-to-day operations. Analyse how banks undertake Credit Risk management.
Step by step
Solved in 2 steps
- (a) Distinguish between the activities of retail and investment banks and discuss howthis has an impact on their approaches to risk management. (b) Explain liquidity risk and credit risk faced by banks and discuss how banks managethese risksExplain operational risks faced by banks operating in the financial sector, and discuss how a risk management tool can be used to mitigate such risks.In managing credit risk for banks what are the two main concerns that banks have when lending money? Name them, and explain what these are, then give an overview of the tools banks use to mitigate credit risk.
- Explain two types of financial risks faced by banks operating in the financial sector, anddiscuss how a risk management tool can be used to mitigate such risks.Outline the main financial risks exposed by commercial banks and their implications on the value of the bank?What is written in background of study for research on risk management mechanism in the banking sector from a customer's perspective?
- What financial risks and non-financial risks affect customers in the banking sector concerning risk management?Distinguish between the activities of retail and investment banks and discuss howthis has an impact on their approaches to risk management.Briefly explain how banks manage credit risk and interest rate risk.
