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- Credit Risk: The possibility of loss due to a borrower’s failure to repay a loan or meet contractual obligations.
- Market Risk: The potential for losses due to changes in market conditions, such as interest rates, exchange rates, or equity prices.
- Operational Risk: Risks arising from failed internal processes, people, systems, or external events, including fraud and cyberattacks.
- Liquidity Risk: The risk that a bank may not be able to meet its short-term financial obligations due to insufficient liquid assets.
- Interest Rate Risk: The risk of financial loss due to fluctuations in interest rates affecting a bank’s assets and liabilities.
- Compliance/Regulatory Risk: Risks associated with non-compliance with laws, regulations, or standards imposed by regulatory bodies.
- Reputation Risk: The potential damage to a bank’s reputation due to negative public perception, scandals, or adverse events.
- Strategic Risk: Risks linked to ineffective business strategies, decision-making, or adaptability to market changes.
- Country/Political Risk: The possibility of losses due to political instability, economic downturns, or changes in foreign regulations affecting international operations.
- Environmental and Social Risk: Risks stemming from environmental issues, climate change, or social responsibility concerns impacting banking operations.
