Tài chính doanh nghiệp - Chapter nineteen: Types of risks incurred by financial institutions

One of the major objectives of a financial institution’s (FI’s) managers is to increase the FI’s returns for its owners Increased returns often come at the cost of increased risk, which comes in many forms: credit risk – foreign exchange risk liquidity risk – country or sovereign risk interest rate risk – technology risk market risk – operational risk off-balance-sheet risk – insolvency risk