Which of the following is one of the risks the OCC requires banks to measure and set limits on?

Question

Quizplus · Accepted Answer

The OCC requires banks to measure and set limits on all of the options listed as they are each considered important risks that banks must manage.

- Strategic risk refers to the risk of loss resulting from failed business strategies, improper implementation of strategies, or any unexpected external events that impact the bank's ability to achieve its objectives.
- Reputation risk refers to the potential for negative public opinion or loss of confidence in a bank's ability to meet its obligations.
- Price risk refers to the potential for losses resulting from changes in market prices, such as interest rates or commodity prices.
- Liquidity risk refers to the risk of loss resulting from the bank's inability to meet its funding needs or to sell assets in a timely manner to meet its obligations.

Therefore, all of these risks are important for banks to measure and manage.

Which of the Following Is One of the Risks the OCC