MANAGEMENT

BUISENESS MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following types of credit risks is not rated in the bank’s BOBRAM system?
A
Industry Risk
B
Management Risk
C
Business Risk
D
Credit spread Risk
Explanation: 

Detailed explanation-1: -Credit risk is defined as the potential loss arising from a bank borrower or counterparty failing to meet its obligations in accordance with the agreed terms.

Detailed explanation-2: -Sol. Account Risk is Not a type of risk in Banking Sector. Sol. Operational risk is the risk of loss due to errors, interruptions, or damages caused by people, systems, or processes.

Detailed explanation-3: -Different factors are used to quantify credit risk, and three are considered to have the strongest relationship: probability of default, loss given default, and exposure at default.

There is 1 question to complete.