For a bank, Operational risk arises from unexpected internal or external operations related events. The unexpected operational events can occur from failed internal processes, failed transactions, human or system errors and loss of data due to some natural disaster or hazards, which all result in loss for the bank. Operational risk can arise from both […]Continue Reading... No Comments.
After the latest financial crisis in 2008-09 which led the whole world into recession, the Basel Committee on Banking Supervision (BCBS) has started working on the Basel II norms to strengthen the financial regulations and supervisory process to protect the financial system from another financial crisis. It also aims to improve the banking minimum capital […]Continue Reading... No Comments.
Basel I had been modified later to Basel II in 2004 to make it more effective to regulate the banks. While Basel I had considered only the credit risk, Basel II has considered other risk factors as well and suggested international standard guidelines to guard all the banks against the same. Basel II has published […]Continue Reading... No Comments.
Basel I is the recommendation set published by central bank heads from G10 (Group of 10) countries in the world in 1988 which provides the norms of minimal capital requirements for Banks. Before publishing Basel II with better risk management, it was the widely used banking regulation guidelines in the world. Basel I was prepared […]Continue Reading... No Comments.
Financial Risk Financial Risk refers to the risk associated with any kind of financial investment be it equity shares, bonds, derivatives or any other financial instruments. Risk arises from the uncertainty of the return of the investment and loosing the whole or part investment value because of different reasons. Main types of financial risks are […]Continue Reading... No Comments.