Financial Sector Faces Triple Threat: Market, Credit, and Operational Risks
The article discusses different types of risks that financial organizations face, including market risk, credit risk, and operational risk. Market risk comes from changes in market prices, credit risk is when a party doesn't fulfill their financial obligations, and operational risk covers everything else that can go wrong. Operational risk is the most extensive category and includes things like natural disasters and mistakes in business decisions. Understanding and managing these risks is crucial for financial institutions to protect their financial health.