Why risk management is so important in banking industry.

 

Discuss, why risk management is so important in banking industry. Highlight some of the major risks, banks in Saudi Arabia are facing. Do you think these banks are taking adequate measures to monitor and manage their risk exposure?

 

Sample Solution

Why risk management is so important in banking industry

The perception of risk management is fundamentally changing within today`s institutions. It is no longer purely used as a control mechanisms but as a critical input into the basic business question that if the revenues out of this transaction will compensate me for the additional risks I am taking on. Risk management implies significant limits on the ability of highly leveraged financial institutions such as banks to provide badly needed venture capital. Risk management is an essential part of helping the bank grow while keeping an eye on the potential consequences if something goes wrong. This could be external factors such as a recession or a stock market crash or external factors such as IT failure.

Feng shui is an old Chinese rationality about how people and their surroundings cooperate and have connections. It incorporates the rule that everything has vitality and is associated with everything else. It is stemmed in the conviction that dependent on laws of nature, standards, hypotheses and methods we can see how to make a situation that enables us to be in amicability and parity. It additionally can control us to improve certain parts of our lives.

The fundamental rule of feng shui is chi or vitality. It is a feng shui rule that is utilized through all of life. It interfaces the vitality of everything together. There can be chi or vitality of earth, the air and individuals. We can see the nature of chi communicated through regions of shading, frame, shape, sound and the different cycles in nature. Feng shui standards work to guarantee that the chi is permitted to continue streaming and not stall out or exhausted.

In feng shui standards, there are two primary kinds of feng shui that we have to consider. One of these is physical and contains the genuine structures, environment, structures, streets and plan. Alternate includes directional impacts that in spite of the fact that are imperceptible, still have an effect on our lives and how we identify with existence. We have to take both feng shui standards into thought while assessing the chi characteristics of a domain.

As indicated by feng shui, if a zone in the earth isn’t being helpful for giving great chi, there are fixes or settles that we can use to restore the chi to a characteristic solid state and keep on streaming all through the space. We can settle or address the feng shui of a region by making little or enormous alterations and applying feng shui procedures. These strategies fuse the utilization of various components to make equalization and concordance.

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