Risk
Risk is the potential outcome of gaining or losing something. Risk can also be defined as the intentional interaction with uncertainty. uncertainty is an unpredictable, potential, and uncontrollable outcome. So, risk is a consequence of action taken in spite of uncertainty.
Risk Management
Risk management is the process of identifying and analysing risks and managing their consequences. The banking sector has perhaps the most specific focus on the management of financial risk.
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Risk Management |
Risk management is a discipline at the core of every financial institution and encompasses all the activities that affect its risk profile. It involves identifying, measuring, monitoring and controlling risk to ensure that
- The individuals who take our manage risk clearly understand it.
- Risk exposure is within the limits set by the BOD.
- Risk taking decisions are explicitly and clear.
- Risk taking decisions is in line with the business strategy and objective set by BOD.
- Sufficient capital as a buffer is available to take risk.
- Credit risk management
- Assets liabilities risk management
- Foreign exchange risk management
- Money laundering risk management
- Internal control and compliance risk management
- Information and communication technology risk management