I'm trying to understand the concept of Pillar 2 risks. Could someone please explain what these risks are and how they might affect an organization or individual?
6 answers
Alessandro
Mon Nov 11 2024
Strategic risk, for instance, involves the potential for poor decision-making or misaligned strategies to harm the organization.
Carlo
Mon Nov 11 2024
Interest rate risk in the banking book is one example of the risks associated with financial operations.
Bianca
Mon Nov 11 2024
Business model risk refers to the chance that the organization's current model may become obsolete or unprofitable.
Silvia
Mon Nov 11 2024
This type of risk arises due to fluctuations in interest rates, which can impact the value of assets and liabilities.
Eleonora
Mon Nov 11 2024
Reputational risk is another concern, as damage to an organization's reputation can lead to loss of trust and customers.