Prior to the most recent financial crisis, the risks faced by FIs have traditionally been measured and managed by

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Prior to the most recent financial crisis, FIs traditionally measured and managed risks through functional risk areas such as liquidity risk, price risk, and credit risk. This approach allowed FIs to assess the potential impact of each type of risk, and implement strategies to mitigate them accordingly. However, it was found that this approach was not sufficient in managing the interdependencies and correlations between risks across different functional areas, leading to the need for enterprise risk management techniques.

Prior to the Most Recent Financial Crisis, the Risks Faced