question archive The current supervisory practice toward risk management: a
The current supervisory practice toward risk management: a
Subject:BusinessPrice:2.88 Bought3
The current supervisory practice toward risk management:
a. focuses on the quality of a bank's balance sheet.
b. determines whether capital requirements have been met.
c. evaluates the soundness of a bank's risk-management process.
d. focuses on eliminating all risk.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
- The correct answer is C: Evaluates the soundness of a bank's risk-management process.
Banks must take risks; however, they cannot survive without practicing risk management. Risk management is a very critical aspect for survival and continuity of any financial institution. The risk management procedures should be outlined clearly; otherwise, the banking system will fail. Risk management prevents potential losses and enables the realization of additional profits. A well-defined risk management process protects the bank's assets and manages against potential risks in the future.
