Banking Risk Management – RCB Strategy

Risk can have a significant impact on a credit institution, both as an influence that is felt in recorded direct losses, and an influence whose effects are felt on customers, staff, business partners and even the bank authority.Banking risks are those risks that banks face in implementing current operations and not only specific risks of traditional banking. Bank risk is the degree of loss suffered by a bank where the counterparty (the client) bankrupts without being able to pay its obligations to the bank. Given the experience, banks agree that the most important cause of losses was the excessive concentration of risk on a customer, industry or economic sector, a country. It is imperative that a respecting bank strategy is to include programs and procedures regarding the management of banking risks in order to minimize the likelihood that potential exposure risks to affect the Bank.