Why financial institutions are managing risk ?

Expert Solution

As we all know that financial institutions those who are involved in managing of procurement, disbursement of funds therefore they be aware about the risk that where they are investing or giving their fund. They investment a huge amount whether in investment or to giving loan and to protect that fund they should know how much risk are there in that investment.

They manage risk to protect their assets and to minimize the losses. We know that Economy are uncertain and rapidly changing therefore it is always necessary for financial institutions to manage their risk and reduce however risk cannot be reduce to the extent of zero.

jeff jeffy answered 1 year ago

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