Everything at a bank revolves around credit risk. A banker’s job is to be wary of and manage the risk as best it can. If the risk is left ungoverned, the consequence could be catastrophic - for example, liquidation.
Key learning objectives:
What is credit risk?
Identify the actions banks can take to manage credit risk and the financial ratios used
What can the bank do if the borrower doesn’t repay?
The Basel Committee Perspective on Operational Risk
Peter Eisenhardt • 18:32