Financial Risks and Banking

Financial Risks and Banking - Banking is generally a highly...

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Banking is generally a highly regulated industry, however, they face a number of risks daily as they conduct business with consumers, business’s, and other financial institutions. According to Bob McGlashan, CMA, the central concern of all risk management is protecting your company’s reputation while managing an appropriate balance of risk and retain relative opportunities inherent to your chosen business. The banking system is centered around trust and managing financial risk (Robert Coleman, 2005). According to a survey conducted by Oversight Systems, 68% of US Financial executives say their CEO is placing greater emphasis on all types of risks. In order for banks to make a profit they need to manage and understand these risks. I believe one of the top risks is the credit risk, in which a person does not pay back the loan, credit card, or some other form of credit they borrowed from the financial institution. Between
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This note was uploaded on 05/07/2011 for the course BUS 105 taught by Professor Unk during the Spring '10 term at AIU Online.

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Financial Risks and Banking - Banking is generally a highly...

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