Risks in Banking Business for JAIIB Exam

Risks in Banking Business: The topic of risks in the banking business is one of the most important topics for the aspirants of JAIIB exam. The JAIIB exam is held twice a year. In this blog, we will be discussing the various types of risks in banking business.

Download Risks in Banking Business E-Book Here

How to Download Risks in Banking Business for JAIIB E-book?

Step 1: Click on the download link. You will be redirected to Oliveboard’s FREE E-Books Page.

Step 2: Create a free Oliveboard account or login using your existing Oliveboard account details

Step 3: Download the book by clicking on the link presented on the page.

What’s there in Risks in Banking Business E-Book

  • Aim
  • Learning Objectives
  • Introduction
  • What is Risk?
  • Types of Risk
  • Credit Risk
  • Liquidity Risk
  • Interest Rate Risk
  • Market Risk
  • Country Risk
  • Solvency Risk
  • Operational Risk

Introduction

Banks are always faced with risk due to the nature of the business conducted by them. Banks or financial institutions not avoiding risk tend to become stagnant over time and are unable to cater to the credit requirements of the society while banks that take excessive risk most of the time end up being overburdened.

What is Risk?

Risk is defined as an unplanned event that has financial implications resulting in a loss for business or reduced earnings. It can also be defined as a condition in which the possibility of obtaining an undesirable outcome is high.

Types of Risk

The various types of risk in the banking business are as follows:

  1. Credit Risk
  2. Liquidity Risk
  3. Interest Rate Risk
  4. Market Risk
  5. Country Risk
  6. Solvency Risk
  7. Operational Risk

Credit Risk

Credit risk is the most common of all the risks in the banking business and also the one causing the most losses in terms of revenue. For example, if a small number of important customers of a bank default in their payments, it could lead to a large loss for the bank as a whole.

Liquidity Risk

Liquidity risk refers to the risk that arises due to the funding of long-term assets with short term liabilities. There is a requirement of liquidity for banks for these reasons:

  1. It acts as a cushion to replace net outflows of the funds (funding risk).
  2. To compensate for non-receipt of funds that are expected to be received as inflow (time risk)

Read More Here

Sneak Peek into the Risk in Banking Business E-book

study-notes-jaiib
study-notes-jaiib-1

DOWNLOAD THE OLIVEBOARD APP FOR ON-THE-GO EXAM PREPARATION

Oliveboard Mobile App
  • Video Lessons, Textual Lessons & Notes
  • Topic Tests covering all topics with detailed solutions
  • Sectional Tests for QA, DI, EL, LR
  • All India Mock Tests for performance analysis and all India percentile
  • General Knowledge (GK) Tests

Free videos, free mock tests and free GK tests to evaluate course content before signing up!

Conclusion

This blog was all about Risks in Banking Business for JAIIB Exam. We hope that it will prove beneficial to the candidates for exam preparation. For more updates, stay connected with Oliveboard.

JAIIB Study Material Compilation

Principles And Practices Of Banking Principles And Practices Of Banking | Study Notes For JAIIB (oliveboard.in)
Reserve Bank of IndiaReserve Bank of India: Organisation & Functions – Oliveboard
Types Of Shares And Their IssueTypes Of Shares And Their Issue- Types, Classification, Bonus Shares (oliveboard.in)
Understanding The Balance Sheet And Its FormatUnderstanding The Balance Sheets And It’s Format (oliveboard.in)
Accounting And Finance For BankersAccounting And Finance For Bankers | Study Notes For JAIIB (oliveboard.in)
Assets & Liabilities Assets & Liabilities – Meaning, Legal Requirements and more (oliveboard.in)
Public Sector Banks And Cooperative BanksPublic Sector Banks And Cooperative Banks | JAIIB Study Notes (oliveboard.in)
Calculation of Interest and AnnuitiesCalculation of Interest and Annuities-Business Mathematics For JAIIB (oliveboard.in)
Calculation of YTMCalculation of YTM(Yield to Maturity)-Basics of Business Mathematics (oliveboard.in)
Consumer Protection ActConsumer Protection Act COPRA- Free Pdf Notes for JAIIB 2022 (oliveboard.in)
Risk and Basic Risk Management FrameworkRisk and Basic Risk Management Framework JAIIB | Oliveboard
Risks in Banking BusinessRisk in Banking Business
Functions of BankFunctions of Bank – Short Notes for JAIIB Exam | Oliveboard

Also Read:

  1. 5-Important Tips To Crack JAIIB Exams| Check Here (oliveboard.in)
  2. JAIIB Frequently Asked Questions- 2022| Check Here (oliveboard.in)
  3. JAIIB Genius | JAIIB Weekly Quiz PDF – JAIIB Questions PDF (oliveboard.in)
  4. JAIIB Full Form – Junior Associate of the Indian Institute of Bankers (oliveboard.in)
  5. JAIIB and CAIIB Books- Exams Syllabus, Books, and more (oliveboard.in)

Also Check:

  1. JAIIB 2022 Exam -Notification Released (oliveboard.in)
  2. JAIIB Notification 2022 – Notification PDF, Eligibility, (oliveboard.in)
  3. JAIIB Apply Online – Application Form 2022, Fees, Instru (oliveboard.in)
  4. JAIIB Eligibility – Age, Degree, Nationality, Members (oliveboard.in)
  5. JAIIB Syllabus – Complete List of Papers, Modules (oliveboard.in)
  6. JAIIB Exam Pattern 2022 – Details of Pattern, Marking (oliveboard.in)
  7. JAIIB Admit Card November 2022 – Steps and Direct Download (oliveboard.in)
  8. JAIIB 2022 Cut Offs – Check JAIIB Minimum Cut Off (oliveboard.in)