Montenegrin Journal of Economics

Banking Risks And Risk Measurement

Radoslav Nikčević

2005, vol. 1, no. 2, p. 133

Banks are'risk mashines': they take risks,they transform them, and they embed them in banking products and services. The risk environment has changed drastically. Banking failures have been numerous in the past. Banks try to minimize their losses by managing risks with risk measurements for supporting decisions in the process we discussed above. Curent risks are tomororow's potentional losses. Risk measurement is a conceptual and practical challenge, which probably explains why risk management suffered from a lack of credible measures. This article is atempt indetifay key risks and analyzing mesures for reduce exposure bad influence as more as possibile.

suggested citation:

Radoslav Nikčević. "Banking Risks And Risk Measurement." Montenegrin Journal of Economics. vol. 1, no. 2, 2005, p. 133

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