Risk management is a crucial aspect of investment banking that involves identifying, assessing, and mitigating risks associated with financial transactions.
The key principles of risk management in investment banking are-
Risk identification - It involves identifying potential risks associated with the investment banking transaction.
Risk assessment - It involves evaluating the severity and likelihood of each risk.
Risk mitigation - It involves taking measures to reduce the likelihood or impact of the risk.
Risk monitoring - It involves ongoing analysis and reporting of risk exposure.
Risk culture - It involves fostering a risk-aware culture that emphasizes the importance of identifying and managing risks effectively.
If you want to learn about risk management, then don't miss this opportunity to check out the below video -
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