Description
For this assignment, you will select a publicly traded bank and discuss the people, operational, system, and technology risk exposures that banks encounters. The Rasmussen College Library has databases available to assist with your search.
For this assignment, you will write a minimum three-page paper (not including APA title or references pages). In this paper, please address the following questions:
- What are the operational risk exposures that banks encounter?
- What are specific system and technology risks that banks face?
- What are specific people risks that banks encounter?
- What methods can be used to mitigated these risks?
- Can any of these risks be completely eradicated?
Explanation & Answer
Hi, kindly find attached
Running Head: BANK RISKS AND MITIGATION
Bank Risks and Mitigation
Student’s Name
Institution
Date
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BANK RISKS AND MITIGATION
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Banks encounter several risks, from both within and outside the organizations.
Technological risk, operational risks as well as people related risks get a higher attention.
Operational risks include internal fraud and damage to physical assets. Technological risks
include denial of service and exposure to critical customer data through cyber-attacks. People
related risk include injuries, death and collaboration of employees with competitors. Operational
risks and people associated risks can get reduced to a shallow level, while technological risks can
get reduced to almost zero.
Every business, banks included counts risk as part of their daily activities. Operational
risks in banks, according to the Basel II committee comprises “losses resulting from inadequate
or failed internal processes, people, and systems or from an external event,” (Fiordelisi, Soana &
Schwizer, 2014). However individual banks have the freedom to expand the elements they
consider as operational risks provided those factors fall in the Basel ii categories. The Basel II
definition excludes any form of strategic risk. Specific operational risks in banks include
inte...
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