Traded Bank
For this assignment, you will write a minimum three-page paper (not including APA title or references pages). In this paper, please address the following questions:
- What are the operational risk exposures that banks encounter?
- What are specific system and technology risks that banks face?
- What are specific people risks that banks encounter?
- What methods can be used to mitigated these risks?
- Can any of these risks be completely eradicated?
Answer preview
Operational Risk Exposures That Banks Encounter
Banks are always exposed to operational risk in their daily operations hence need for vigilance in ensuring systems work as set out. These risks are mainly linked to day-to-day operations by the bank staff in handling various responsibilities. Some of these risks include firstly, fraud, where a bank, due to weak system controls from within, lose money fraudulently because of staff negligence or conspiracy. Secondly, a bank manager might end up authorizing a fake cheque if proper internal verification mechanisms are not utilized. Thirdly…
(1000 words)