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What financial risks and non-financial risks affect customers in the banking sector concerning risk management?
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Solved in 3 steps
- Explain operational risks faced by banks operating in the financial sector, and discuss how a risk management tool can be used to mitigate such risks.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.What are the risk associated with banking activities?
- (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 risksRole of Central Banks and Moral Hazards The nature of moral hazard. What is moral hazard, and how can it apply to the financial system?Two types of financial risks faced by banks operating in the Financial sector and state how a risk management tool can be used to mitigate suck risk
- Define credit risk and its implications for banks and other financial institutions as well as ways on how to prevent them.What are the major risks faced by financial institutions?Role of Central Banks and Moral Hazards The consequences of moral hazard. What are the adverse results of moral hazard for the financial system?