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Risk implies future uncertainty about deviation from expected earnings or expected outcome

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Risk implies future uncertainty about deviation from expected earnings or expected outcome. The major risks faced by banks and related financial institutions include credit risks, interest rate risks, market risk, and operating and liquidity risks. The other risks include residual, dilution, settlement, compliance, concentration, country, foreign exchange, strategic, and reputational risks. How does risk differ from uncertainty?

• Give two instances of situations where

(a) there is uncertainty but no risk

(b) there is uncertainty as well as risk.