A credit risk analysis of banks: The users of credit cards influences financial and operational risk in banks leading to credit risk

Abstract

Risk gives the source for opportunity. The concepts of risk and exposure have insignificant differences in their meaning. Risk refers to the probability of loss while exposure is the possibility of loss, though they are habitually used interchangeably. The risk matrix explains that the risk analysis in which rows show the risks and columns show their probability of occurrence and their impact. Financial risk and operational risk occur through countless transactions of a financial and operational nature, including sales and purchases, investments and loans, and various other trade activities. The sample size taken for the study was 230 and the data was collected by way of questionnaire. The study was taken with an objective of analyzing the factors causing financial and operational risk and to examine the protective measures available for such exposures. The findings of the study were to suggest the steps to minimize the financial risk and control the operational risk.