Director
The key activities for banks create risks such as credit, liquidity and funding maturity mismatch alongside market risks, both in terms of traded and non-traded. Banks accept these risks and need to have good knowledge, controls and governance to manage them. This video delves into these areas in more depth.
The key activities for banks create risks such as credit, liquidity and funding maturity mismatch alongside market risks, both in terms of traded and non-traded. Banks accept these risks and need to have good knowledge, controls and governance to manage them. This video delves into these areas in more depth.
7 mins
This video considers the main risks that banks run in the hope of making a profit, while, at all times, controlling and managing those risks. It is the decisions to take financial risk that sets banks (and building societies) apart from other types of company. In manufacturing terms, financial risk is the product that bank “manufacture”.
Key learning objectives:
Outline the principal risks to which banks are typically exposed
Define solvency risks
Define liquidity and funding risks