Seminar paper from the year 2005 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, University of Applied Sciences Essen, course: International Management, language: English, abstract: This paper intends to give an overview about the different types of risks in the banking branch. A short explanation of the four most notable risks is given, which are: Credit risk, market risk, operational risk and liquidity risk.
The paper focuses on the two most important types of risk a bank has to cope with (credit risk and market risk). For this purpose some tools for risk measurement will be introduced before some approaches in respect of mitigation are shown, focusing on derivative procucts.
Last but not least a possible risk management organization is shown, using an Enterprise-wide Risk Management example.