Some time back, I shared some thoughts on various risks faced by banks. For easy remembering
and recall, I also coined COOL TIMES.
The subsequent developments in the market place, particularly in the regulatory space, made
me to rethink and revisit the various risks encountered by banks.
And the findings are:
C – Country Risk, Credit Risk, Compliance Risk, Conduct Risk, Cyber Risk, Collateral Risk
O – Operational Risk
O – Off balance sheet Risk
L – Liquidity Risk, Legal Risk, Leverage Risk
T – Technology Risk
I – Interest Rate Risk, Insolvency Risk
M – Market Risk, Model Risk
E – Exchange Risk, Earning Risk
S – Sovereign Risk, Security Risk
I believe, we may need to periodically revisit this space to add/delete/modify the list of risks
faced by banks.