Risk Management in Commercial Banking

Key Points

• The article aims to explore the causes and types of risks in commercial banking while evaluating risk assessment methods.
• Defines risk as presented by various scholars
• Categorizes risks and types of financial losses
• Assesses quantitative methods for financial risk evaluation with their pros and cons.
• Identifies key types of risks faced by banks, such as credit, operational, and market risks.
• Analyzes advantages and disadvantages of various risk assessment methods.
• Highlights the potential impact of financial losses due to unmanaged risks.