Management of banking risks

In the broadest sense of risk - the uncertainty regarding the implementation of an event in the future. Risk is measured by the probability that the expected event does not occur and will not lead to undesirable consequences. In banking as in other types of business risk is associated primarily with the financial losses that arise in the implementation of certain risks. Risk means the risk (opportunity) loss of the bank of its resources, lost revenue or additional costs incurred as a result of certain financial transactions. In general, the banking sector is highly risky compared with other activities. This feature is caused by? Specificity of the functions performed by each commercial bank. Banks have a lot of partners, customers, borrowers, financial condition that directly affects their position. The activities of the bank is very diverse and includes operations to raise funds, issue and purchase of securities lending, factoring, leasing, providing customers in cash. Implementation of each transaction is associated with the ability to implement multiple risks. As the bank at the same time performs active and passive operations there are risks as credit risk, currency risk, interest rate risk, liquidity risk, the risk of rupture life and attract placement of funds, foreign exchange risk. Category: Management Operations Commercial Bank