Question

Since the dramatic financial crisis, Banks are now doing risk management. Discuss the statement.

Answer 1

As we all know that financial institutions those who are involved in managing of procurement, disbursement of funds therefore they be aware about the risk that where they are investing or giving their fund. They investment a huge amount whether in investment or to giving loan and to protect that fund they should know how much risk are there in that investment.

They manage risk to protect their assets and to minimize the losses. We know that Economy are uncertain and rapidly changing therefore it is always necessary for financial institutions to manage their risk and reduce however risk cannot be reduce to the extent of zero.

bank used to manage risk also in past it does not matter whether there is crisis or not in country. However earlier bank or any other financial institution has not too much resources or skill to find the risk but still they used some fundamental ways to manage risk.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give Thumbs up if you find this helpful.