In earlier article, we understand the many benefits accrued from managing risk. In this article, we move on to understand the different type of risk, a business can be involved with.
Broadly speaking, risk can be grouped into the following type:
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TYPES OF RISK |
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1.0 Market Risk which relates to business environment, industry, political situation, 2.0 Liquidity Risk which relates to cash-flow, funding, capital, 3.0 Credit Risk which relates to customers’ reputation, settlement, accounts, payment, 4.0 Operational or Process Risk which relates to the systems, policies and procedures, internal controls and management supervision
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Click here for the importance or benefits derived from Managing Risks |