Many of the various risks faced by an FI often are interrelated with each other.

Question

Quizplus · Accepted Answer

Risks faced by an FI are often interconnected and can potentially have an impact on multiple aspects of the institution's operations and financial health. For example, a credit risk event could lead to liquidity risk if the FI is unable to meet its obligations due to a lack of available funds. It is important for FIs to have a comprehensive risk management framework in place to identify, measure, monitor, and mitigate these interrelated risks.

Many of the Various Risks Faced by an FI Often