Risk Identification

Bank and Its Risk Identification Analysis
Risk Identification in banking is crucial because it an industry that has a way of utilizing both assets and liabilities to help them generate revenue. Asset transformation is the method in which banks are able to make profit by creating new assets from liabilities (Williamson 1988). The primary ways in which to help generate bank profits is by the dispensing of loans. The interest that is received from the borrower allows the loan to continue to generate profits (Balls 2009). Writers who offer financial accounting assignment help at Edudorm essay writing service notes that the dual function of the bank is to be able to have a depository function and also lending functions. It is this process that gives a bank the ability to continue to function and process. To enhance risk identification which may affect the project different methods such as information-gathering, assumption analysis, checklist, documentation reviews and other tools are used.
How to Perform Risk Identification
Basically I would use the information-gathering tool and the documentation review tool for risk identification purposes. In information-gathering tool the organization can brainstorm about risks for them to pull data that can be beneficial in evaluating current risk that may still exist within the organization. Experts who offer business accounting assignment help at Edudorm essay writing service indicates that it could also help in reflecting if a particular risk has been minimized and properly managed. The documentation review is the other tool that I would recommend to be used during risk identification since it allows the organization to take all of the files and current assumptions that exist and compile it together to use the data they collect for carrying out an analysis on the possible risks that may occur.
A mitigation strategy
Business, market, inflation, interest rate, and credit are risks that affect the banking industry. Business risk determines how each decision made produces a particular outcome. Business risk is a chance of loss and is connected with managerial judgments. Each decision made regarding the products and services of the bank for instance, to change or not change interest rates, marketing strategies affects the ability of the bank to continue to generate income for business (Ghosh 2012). Authors who offer cost accounting assignment help at Edudorm essay writing service points that market risk takes into account that investment portfolios can see a loss in money due to the fluctuations within the market as a whole. Banks need to consider the timing of selling new debts and securities when managing portfolio investments. In order to remain alert to the needs of their consumers’ banks need to continuously make upgrades to their products and services. Doing so will allow them to properly navigate through the ever changing market fluctuations (Panjer 2006).
Loss control methods of the hazards, accountable groups, intended and unintended outcome
The on-going crisis in the banking sector have led to great banking scandals and financial fraud. This has brought up concerns of structural flow and how operation have been carried out, the way they are supervised and regulated. Due to this there have been different approaches that are underway in order to restore the investors’ confidence ((Wehinger, 2012). Tutors who offer managerial accounting assignment help at Edudorm essay writing service acknowledges that in order to control the risks continuous checks on the data and analytic tests should be carried out on weekly basis. To enhance this it should be supervised by Anti-fraud Units.
Methods for Risk Identification
Establishing trust online is a challenge to both the bank and e-commerce institutions. This is done in order to establish firm relationships with their consumers. Instructors who offer activity based accounting assignment help at Edudorm essay writing service argues that in order to achieve this institution should put in place proven measures so that the institution can be in a position that can safeguard its personal information. As a result of implementing proven measures elements such as fraud, inflation and generally the banking risks can be reduced (Barnett, 2012).
References
Balls, A. (2009, February). Crunch reveals banking dysfunction. NZ Business. p. 71.
Barnett, J. (2010). A new prescription for building trust online. Health Management Technology, 31(12), 1.
Ghosh, A. (2012). Managing risks in commercial and retail banking. Singapore: John Wiley & Sons.
Panjer, H. H., & John Wiley & Sons. (2006). Operational risk: Modeling analytics. Hoboken, N.J: Wiley Interscience.
Wehinger, G. (2012). Banking in a challenging environment: Business models, ethics and approaches towards risks. OECD Journal: Financial Market Trends, 2012(2), 79-88.
Williamson, S. D. (1988). LIQUIDITY, BANKING, AND BANK FAILURES. International Economic Review, 29(1), 25.