Welcome » IT Booklets » Management » II Risk Management
Financial institution management should understand and evaluate
risk across the institution, including the definitions and
categories of risk. Risk is the potential that events, expected or
unanticipated, may have an adverse effect on a financial
institution's earnings, capital, or reputation. For regulatory
purposes, risk is categorized as operational, liquidity, interest
rate, credit, price, reputation, strategic, and compliance (legal).
Although financial institution management should be aware of all
potential risks as part of its overall risk management program,
operational risk is the primary risk associated with IT.