Podcast
Questions and Answers
What is risk in finance?
What is risk in finance?
- A potential for losing all or a portion of the investment
- An unforeseen financial event that could lead to loss of investment or lower earnings (correct)
- A guaranteed financial event that leads to profit
- A potential for earning higher returns
What is the relationship between risk and return?
What is the relationship between risk and return?
- The likelihood of profit decreases with risk
- The likelihood of profit increases with risk (correct)
- There is no relationship between risk and return
- Risk and return are unrelated factors
Why must banks effectively manage the risks they take?
Why must banks effectively manage the risks they take?
- To avoid any potential negative impact on the financial health of financial institutions (correct)
- To reduce the likelihood of profit
- To take more risks
- To increase profits
What are the benefits of implementing IT systems for risk management?
What are the benefits of implementing IT systems for risk management?
Who is accountable for risk management in an organization?
Who is accountable for risk management in an organization?
What is the relationship between risk and return?
What is the relationship between risk and return?
What is the definition of risk?
What is the definition of risk?
What is the importance of risk management in financial institutions?
What is the importance of risk management in financial institutions?
What is one of the key benefits of implementing IT systems for risk management?
What is one of the key benefits of implementing IT systems for risk management?
Who is responsible for risk management in an organization?
Who is responsible for risk management in an organization?
What is the reason for the constantly changing regulatory environment for the financial services industry?
What is the reason for the constantly changing regulatory environment for the financial services industry?
What are some examples of cybersecurity threats that financial services organizations face?
What are some examples of cybersecurity threats that financial services organizations face?
What can traditional banks do to counter the increased competition from online banking companies and digital firms?
What can traditional banks do to counter the increased competition from online banking companies and digital firms?
