Abstract
Risk management is an activity, which incorporates acceptance of risk, risk assessment, developing strategies to manage it, and easing of risk. Several traditional risk managements are focused on risks arising from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management focuses on risks that can be managed using traded financial mechanisms. The purpose of risk management is to reduce different risks to an acceptable level. The paper describes the risks international banking system faces in the current times and recommends alternatives to mitigate these.
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