Author: Md Monirul Islam

Non-financial risks may not show up directly in a bank’s trading book or loan portfolio. But when they hit, they can be just as damaging as any credit or market loss. In some cases, they are more dangerous because they…

Financial risks are the most direct threats to a bank’s profitability and capital. There are four main types. A. Liquidity Risk Liquidity risk arises because banks fund long-term assets with short-term liabilities. If depositors suddenly demand their money back or…

Risk in banking comes in many shapes and sizes. Categorizing it properly helps banks to decide which risks to avoid, which to transfer, and which to manage actively. There are two broad ways to look at banking risks. From a…

Risk is the possibility of incurring financial loss or deviation from expected results. Return is the profit, income, or gain earned from an investment over a certain period. There exists a positive relationship between risks and returns. High Risk, High…

Risk management is the process of identifying, assessing, monitoring, and controlling risks that may negatively impact the achievement of an organization’s goals. The core goal of Risk Management is to minimize losses and maximize the outcomes within the organization. Risk…

A risk strategy is a structured plan. Banks use it to manage threats and uncertainties. It helps to identify risks before they cause harm. The goal is to reduce negative impacts. It also helps banks to grab new opportunities. Every…