Terms related to identifying, assessing, and controlling financial risks.
credit risk – the risk of default by a borrower.
market risk – the risk of losses due to market movements.
operational risk – risk arising from failed internal processes, people, or systems.
liquidity risk – the risk that a bank cannot meet its financial obligations.
risk mitigation – strategies to reduce exposure to risks.
capital adequacy – requirement to have sufficient capital to absorb losses.
systemic risk – risk of collapse of an entire financial system or market.