📝 One-liners · 66 cards
Risk in banking business
What is the primary definition of risk in the context of banking business?
Risk in banking is the potential for loss or adverse outcome arising from uncertainty in financial transactions, operations, or external events. It encompasses the possibility that actual outcomes will differ from expected outcomes.
What is the difference between pure risk and speculative risk in banking?
Pure risk has only loss outcomes; speculative risk has profit or loss outcomes.
Which are the three major categories of risk faced by commercial banks in India?
The three major categories are credit risk (default by borrowers), market risk (losses due to market price movements), and operational risk (failures in processes, people, or systems). These are the pillars of Basel II/III risk framework.
What is pipeline risk in the context of banking business?
Risk arising from committed but unfunded loan or investment exposures.
🔒
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 in banking business.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days