This paper seeks to provide an explanation on how to manage risk in a financial industry. Specifically, this paper provides an explanation on how to manage risks of a banking sector, and this is in regard to the taking of an insurance policy. In the banking sector, Risk management practices focuses on the operational risks, liquidity risks, credit risks, market risk and interest rate risk. This paper focuses mostly on the Credit risk of my hypothetical banking organization. The hypothetical name of my bank is the Bank of Venus. This is a bank, with a presence all over the country, and has more than 300 employees. This bank specializes in offering all manner of banking services, and this includes issuance of loans, safe keeping of precious commodities, money transfer and forex exchange. All these areas have their own risks. Credit risk refers to a situation where a borrower may fail to pay a debt, in which he or she is obligated to pay (Olson and Desheng, 51). The risks involved in this situation include a loss on the interest, and the principal amount given as a loan. Occurrence of this risk also causes a disruption in the cash flow of the bank, and an increase the costs of collecting the debts owed to the bank. Effectively reducing the occurrence of these risks, results to the success of the banking institution. ...Show more
Credit Risk Management: Introduction: Risk management refers to the identification, prioritization and assessment of risks, and this is followed by economical and coordinated use of resources meant to control, monitor and minimize the probability of the unfortunate event occurring…
The amount of traffic passing through this stretch presents a great investment venture that if not taken care of would cost the country’s economy. The old Newmarket Viaduct, a stretch constructed and completed in 1965, is part of this stretch. However, this Viaduct has shown its ageing and possesses great danger to the people living around the viaduct.
INTRODUCTION To understand the different aspects of risk management it is very important to first understand what exactly this whole practice is all about. Risk is basically the effect of ambiguity on the goals and objectives; it can be both positive and negative.
Adherence to these principles is for the purpose of improving the company’s performance in terms of value additions and risk management. The increase in value of a company means the well-being of the entire company since all its beneficiaries for example; company officials, shareholders and all the stakeholders will have a share of the benefits.
Risk management therefore involves the identification of risk, the measuring of the risk in regards to its likelihood of occurring and the impact it can have on the business if it occurs. This helps in identifying the best way to hedge a risk, how much to investment in the management of the risk and many other factors (Christoffersen 158).
These have brought denial of labor rights to employees. However, it is not that Wal-Mart cannot pay for any penalties for looking down upon his workers and denying them the rights to vote but it is just a matter of
If only the Egyptians had knowledge of exactly when the Nile will fail to flood, then they would not have needed writing, calculations, surveying or geometry. In other words, early civilization basically was a product of the desire to manage risks (Cooke, 2009).
usinesses stand to lose money and assets through poor decision-making, poor investment choices, and poor understanding of their industries (Hussain, Hussain, Dillon & Chang, 2014). In recent times, some scholars have classified risk assessment as a source of competitive