Risk in the banking business is inherent and multifaceted, encompassing various
factors such as credit, market, operational, and regulatory risks. Credit risk arises from the potential default of borrowers, while market risk pertains to fluctuations in interest rates, exchange
rates, and asset prices. Operational risk stems from internal processes, systems, and human error, posing threats to efficiency and security. Regulatory risk arises from changes in laws and
regulations, impacting compliance costs and business operations. Addressing these risks requires comprehensive risk management frameworks and proactive measures to safeguard the stability and
resilience of banking institutions.