Economic currency risk

Economic currency risk is to changes in the competitiveness of the bank or its agencies, members of the consolidated group, on the international market through significant changes in exchange rates. Operational and technological risk - the potential risk to the existence of the bank, which arises from the shortcomings of corporate governance, internal controls or inadequate information technology and information processing in terms of manageability, versatility, reliability, controllability and continuity. These deficiencies can lead to financial loss for any errors or untimely performance of work or fraud, or cause the interests of the bank that will suffer in some other way, such as dealers, loan officers or other employees of the bank to exceed its powers or carry out operations in breach of ethics or to too high a risk. Operational and technological risk also arises from the inadequacy of the strategy, policy and information technology. Other aspects of operational and technological risk belongs to the likelihood of unforeseen events, such as fire or natural disaster. Reputation risk - this is an existing or potential risk to earnings and capital, which is due to an unfavorable perception of the image of a financial institution clients, counterparties, shareholders (members) or supervisors. This affects the ability of the bank to establish new relationships with contractors, provide new services or to maintain existing relationships. This risk may result in the bank (or its managers) to financial loss or decrease in customer base, including the involvement of administrative, civil or criminal liability. Reputation risk occurs at all levels of the organization, and therefore the banks to take responsibility for their relationships with customers and society. Topic: Risks in Banking