“RISK” can be defined as possible unfavorable impact of uncertainties associated with business.

Lower risk implies lower upside and downside potential e.g. cash in hand has low potential compare to loans portfolio where risk is more.

Lower the risk lower the returns higher the risk higher the returns.

The banking business there is number of risks associate with investment and advances portfolio.

We are trying to brief you in our various sessions regarding the impact of risk factors effecting banks profits.

• Liquidity Risk
• Interest rate Risk
• Market Risk
• Default or credit Risk
• Operational Risk
• Off-Balance Sheet Exposures
  

Management of risks begins with identification and its impact on business. After identifying risk we may decide to accept the risk and use it positively for effective yielding or just to avoid it or accept it partially.