July 31, 2018
Over the decades, the financial services industry has undergone significant transformation due to internal and external factors, including business model transformation, adoption of advanced technologies, changing regulatory environments, etc. Modern banking sector is a highly complex ecosystem, where stakeholders of different backgrounds — internet, tech companies, startups — play an increasingly influential role.
In an increasingly complex environment of the financial services industry, new complexities arise, requiring an adjustment in risk management systems and procedures. For financial institutions, expanding the array of risks that come with new types of players, new technologies, ever-growing complexities of national and international regulations, as well as changing consumer behavior, require significant resource investments to address financial and other risks naturally occurring as a result of those changes. More than ever, chief risk and compliance officers play a critical role in monitoring and managing these risks to ensure a safe transformation of banking, and ensure continuity of their businesses.
In its simplest sense, risk could be defined as the uncertainty of an event to occur in the future. In the banking context, it’s the exposure to the uncertainty of an outcome, where exposure could be defined as the position/stake a bank takes in the market.
If history was any indication, banks have borne billions in losses due to imprudent risk-taking. It is hence vital to understand the different types of risks faced by every bank in 2018 and beyond.
Banking risks can be broadly classified under 11 categories:
Business/Strategic risk
Compliance risk
Credit risk
Cybersecurity Risk
Liquidity risk
Market risk
Moral hazard
Open Banking Risk
Operational risk
Reputational risk
Systemic risk
Business risk is the risk arising from a bank’s business strategy in the long term. When a bank fails t ...
This content is available for members only. Subscribe now!
12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.
instant access to reports and global community along with donation to COVID-19 fund.
12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.
instant access to reports and global community
MEDICI offers data-driven, original, unique, and forward-thinking content to understand the “why” behind the “what”
10,000+ insights, 100+ research reports, and 1,000+ videos based on data, collected and processed by top-in-class researchers with over seven years of experience in the financial service industry.
We do not stop at the data; we analyze it and extrapolate actionable insights that shape and forecast market trends. All of our pieces are neutral, authentic, and unique – this means that you can’t read them anywhere else!
We do also care about design. It’s why our infographics are the most-used ones in company reports and the most shared ones on social media.
We have one of the largest databases with more than 13,000 company profiles listed across 60+ verticals! The database contains primary data collected in two ways:
Through our Global Listening Engine – a proprietary algorithm able to extrapolate and collect data across numerous sources
Directly from FinTechs – thanks to the onboarding flow through which companies can list themselves on the most used database for venture capital in the industry
You will be added to our private WhatsApp Channel with more than 200 FinTech leaders across the globe, where we engage in discussions around various financial services topics daily. After a few clicks, you’ll get to know the whole community, including the MEDICI team – you can ask questions, suggest topics, and get behind-the-scenes insights
MEDICI Inner Circle™ is the membership you need to freely access all MEDICI content, which includes insights, research reports, videos, startup knowledgebase, and the members-only community for live engagement.
We cover more than 60+ sub-segments in FinTech – but we do not stop there; we also cover topics beyond FinTech, such as InsurTech, RegTech, PropTech, WealthTech, BankTech, AgriTech, and the enabling technologies enabling innovation such as AI, Blockchain, etc.
By becoming a member, you will unlock all the content on our website. A free subscriber gets access to only 5% of what we publish on the web-site. Paid members also get preferred access to our live events, and exclusive access to the members-only community for live digital engagement.
Yes. Please write to us at innercircle@goMEDICI.com.
Yes. Please write to us at innercircle@goMEDICI.com.
We offer a 7-day free trial during which you can access all of our data, insights, and analyses. You can cancel the subscription any time before the end of the free trial period. However, we do not offer refunds.
Sign up to read the article