Академический Документы
Профессиональный Документы
Культура Документы
Risks in Business
Risk can be defined as any uncertainty about a future event that threatens the organisation's ability to
accomplish its mission. Business is a trade off between risk and return. There can be no risk-free or zero
risk oriented business. Risk in its pragmatic sense, therefore, involves both threats that may be
materialised and opportunities which can be exploited.
Credit Risk is the risk of loss to the Bank in the event of Default.
Default arises due to counterparty's inability and/or unwillingness to meet commitments in relation to
lending.
Credit risk is the potential loss that a bank borrower or counter party will fail to meet its obligation in
accordance with the agreed terms
A) Transaction risk
B) Portfolio risk
a) Grade risk a) concentration risk
b) default risk b) intrinsic risk
1) non payment
2) delayed payment