📝 One-liners · 66 cards
RISK AND BANKING BUSINESS
What is the primary definition of risk in the context of banking business?
Risk in banking is the possibility of loss or adverse outcome arising from uncertainty in future events, including credit, market, liquidity, and operational exposures.
What is residual risk in banking after applying risk mitigation measures?
Risk remaining after controls and mitigation strategies are applied
Which Basel framework introduced a formal three-pillar approach to bank risk management?
Basel II introduced the three-pillar framework: Pillar 1 (minimum capital requirements), Pillar 2 (supervisory review), and Pillar 3 (market discipline).
What is pipeline risk faced by banks in loan origination?
Risk of rate changes between loan commitment and actual disbursement
🔒
Unlock 66 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for RISK AND BANKING BUSINESS.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days