![]() Or, counterparty risk which may arise if the other party to the investment or trading transaction (futures, options, or swaps) may not fulfil their obligation.default on different loans a bank has given to its clients (total credit exposure). ![]() The job of a credit risk manager involves analyzing and mitigating the risk arising from, To analyze and mitigate the risk present across the organization, risk managers are appointed across different departments and their field of expertise includes the following categories: Credit risk manager Different banks and institutions have specifics models in place to monitor and quantify their risk exposure. The risk manager does his/her job by setting up policies and procedures to analyze and mitigate the risk inherent in these day-to-day activities. Within the scope of finance, a risk manager is responsible to control and manage the risks arising from different financial activities that a financial institution undertakes. Risk management practices involve setting up policies and procedures in place to assess, analyze, control, and manage different risks that an institution is exposed to. They have emphasized the practice of risk management in almost all the financial institutions and companies across the world. These rules and regulations demand strict monitoring of a financial institution’s risk exposure and compliance with them. IntroductionĮver since the financial crisis of 2008, new rules and regulations have been put into place by different regulatory authorities across the world. This article written by Akshit Gupta (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents the job description of a Risk Manager.
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