BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Customer risk
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Reputation
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Goodwill risk
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Operational risk
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Detailed explanation-1: -Credit risk is the biggest risk for banks.
Detailed explanation-2: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.
Detailed explanation-3: -Operational risk losses from internal scams can stem from asset misappropriation, forgery, tax non-compliance, bribes, or theft. Fraud committed by external parties includes check fraud, theft, hacking, system breaches, money laundering, and data theft.
Detailed explanation-4: -There are four main risks that are central to being a bank: credit risk, market risk, liquidity risk and operational risk.
Detailed explanation-5: -The OCC has defined nine categories of risk for bank supervision purposes. These risks are: Credit, Interest Rate, Liquidity, Price, Foreign Exchange, Transaction, Compliance, Strategic and Reputation. These categories are not mutually exclusive; any product or service may expose the bank to multiple risks.