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Identify the risk that best matches each scenario below.
Scenario
10 First Bank decides that it must move into the digital age by signing a contract with a new startup technology company that has no experience in banking but has a new financial application with beautiful graphics.
11 Big Bank needs to reduce its mortgage lending employee costs so for employment tax purposes it classifies its mortgage lenders as a questionable status as independent contractor so that it does not have to pay employment taxes instead of classifying its employee as the more expensive employee classification.
12 During a time of high uncertainty and inflationary economic tendencies First Bank decides to invest in long-term low interest bearing investments.
13 Second Bank has fallen further behind First Bank in market share and needs to increase its volume of commercial loans. Second Bank has decided to provide favorable loan terms to borrowers with average to poor credit histories because they know that these borrowers are always looking for low cost money.
14 Big Bank determines that the elderly are much more influenced by advertising and high-pressure sales pitches so they decide to create a special team of lenders and account opening representatives to call and visit the elderly in person to make a strong handed sales pitch.
15 The new head of the Federal Financial Institutions Examination Council convinces all of the council members of that the risk of cybersecurity breaches has been blown out of proportion and significantly reduces regulation and the number of active examiners assigned to review cybersecurity measures of all of the banks in the nation at a time that a new cybersecurity software has just been implemented and adopted by substantially all of the United States banks.
16 In an effort to catch up to First Bank, Second Bank has been on a merger spree and has spent all of its cash and heavily borrowed on mergers and acquisitions to betting that the increased business will bring back the cash really fast.
Market
Credit
Liquidity
Interest
Operational
Legal & Regulatory (Compliance)
Strategic
Reputation
Systemic

Options are :

 
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