Risk management is critical for financial institutions from "summary" of The Economics of Money, Banking and Financial Markets, eBook, Global Edition by Frederic S. Mishkin
Risk management plays a crucial role in the operations of financial institutions. In the dynamic and complex environment of financial markets, institutions face various types of risks that can impact their financial health and stability. These risks can arise from different sources such as credit, market, liquidity, operational, and legal risks. Effective risk management practices enable financial institutions to identify, assess, and mitigate these risks in order to protect their assets, investments, and reputation. By implementing robust risk management frameworks, institutions can enhance their resilience to external shocks and uncertainties, thereby safeguarding their long-term viability and sustainability. Furthermore,...
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