Event risks such as earthquakes, fraud and theft:

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Event risks such as earthquakes, fraud, and theft may have a significant and negative impact on an FI's performance, as they could result in financial losses, reputational damage, and legal liabilities. However, these risks are difficult to measure and predict, as they may occur unexpectedly and their severity may vary depending on the specific circumstances. Therefore, FIs need to manage these risks through a combination of prevention, detection, and response strategies, such as investing in security systems, performing due diligence on customers and transactions, and having contingency plans in place.

Event Risks Such as Earthquakes, Fraud and Theft