Question

what are the different types of incidents that occurs in bank?

Answer 1

Solution:

An incident is the occurrence of a seemingly minor event, which is important enough that, if not properly managed, can lead to serious consequences. In contrast, a crisis is a stage in a series of events that significantly determines the direction of all future events.

Banks are exposed are two types of incidents, namely incdents as a result of internal causes and incidents as a result of external causes. An example of an internal incident is the Barings bank case(Riskglossary, 2010). An example of an external incident is that of North Rock bank, which approached the Bank of England for emergency financial assistance.

An incident is therefore defined as the occurrence of a seemingly minor event, can lead to enough that, if not properly managed, can lead to serious consequences. In the world of business an incidentcan be defined as any event which is not part of the standared operation of a service and which causes, or may cause, an interruption to or a reduction in the quality of that service.

Incontrast, a crisis is a stage in a series of events that significantly determines the direction of all future events. The North Rock incident is a classic example of an incident turning in to a crisis. The news of the incident leaked, and soon aterwards customers started with drawing deposits because they had apparently lost confidence in that particular bank.