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10 Financial risk management vocabulary

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.

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capital adequacy – requirement to have sufficient capital to absorb losses.

systemic risk – risk of collapse of an entire financial system or market.

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Banking industry essential vocabulary
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