Our world is forever changing and one of the leading reasons for this change is due to the technological advancements. In day to day operations we are able to complete tasks faster and more efficiently with technology. Within the banking industry we have seen the rise in apps that allow one to transfer money, cashing checks by taking pictures, and much more. This is a great opportunity for many, but one is faced with the rising dilemma of how to defend themselves from these problems. These problems could range from cyber hacking, software malfunctions, and an easier environment for vulnerable information floating in the general environment. As a result, many banks are forming risk management strategies to combat these threats. According to the International Finance Magazine (2013) companies are investing more time and money into IT systems that could create a more favorable risk management outloo...
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...d with an ever changing risk management portfolio ranging from the technological, credit, and investment and market risk regions. Today’s business world requires banking institutions to be doing their jobs regardless of profits, because banks are the core of the economy and drive enterprise through transaction, loans, and acquisitions. Therefore, banking companies need to be implementing risk management in everything they take part in, because one bad investment or procedure could create havoc through the industry. Therefore, banks have created and used new and old risk management practices that we see in our text books and studies today and refined them to fit the needs of their specific industry. In retrospect the banking industry’s interests for risk management and insurance are very similar and have devolved through the years to prevent another economic disaster.
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