General macroeconomic risks may affect all risks of a financial institution.

Question

Quizplus · Accepted Answer

General macroeconomic risks such as inflation, recession, and currency fluctuations can have a significant impact on financial institutions, affecting their profitability, asset quality, and liquidity. Therefore, these risks may amplify or offset other risks faced by the institution, making it important to monitor and manage macroeconomic developments in addition to specific risks.

General Macroeconomic Risks May Affect All Risks of a Financial