62% of organizations have experienced a significant risk event within the past three years. Banks face a variety of risks daily related to credit, liquidity, market, and general operations. These risks can be potentially disastrous for banks as well as their stakeholders. Therefore, banks need to manage these potential risks before they result in major financial losses.
Bank Risk Management is defined as preventing and managing potential risks that can impact a bank’s finances and overall operations. Risk Management Systems can help banks collect and track important data related to potential risks. Also, they can analyze and evaluate these risks and perform corrective action against these risks.