LAWS10855 Lecture Notes - Lecture 7: Special Executive, Canadian Imperial Bank Of Commerce, Royal Assent
Document Summary
Credit risk: customer not paying back the loan. Market risk: value of loan collateral has changed, increases the risk of that loan for the bank. Poliical risk: federal government decides to ighten requirements for home mortgages. Atm machine crashes and customers are unable to withdraw or make payments. Operaional risk: ask the teller to make a deposit of and he puts in instead. Legal risk: customer sue in class acions for improper interest charges. Reputational risk: relects the reputaion of the bank or organizaion. If you have a legal risk it might have an efect on the reputaion of the bank. For example: in class acions (talked about in the legal risk) could also translate into a reputaional risk if it gets reported in the media and thus has a negaive efect on the image. An automaker/manufacturer is subjected to many risks like: Credit risk: the dealership has defaulted on inventory inancing.
