Classification of Risk
As indicated in our risk management framework in Chapter 2, the accurate classification of risk is a vital first step in the entire risk management process. If a bank is unable correctly to identify and classify the risks it is facing, it will be unable to measure risk exposure properly. This chapter is devoted to a description of the different types of risk a bank is likely to face in the normal course of business.
KeywordsCredit Risk Position Risk Market Risk Product Risk Inventory Position
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