e. Information risk is the risk that
stemmed up when the availed information tends to be inaccurate or
insufficient, loss of data, lack of suitable MIS, information security and
confidentiality.
f. Legal risk arises from the
potential that unenforceable contracts, lawsuits, or adverse judgments can
disrupt or otherwise negatively affect the operations or condition of a
banking organization.
g. Security risk is connected with
the probability of breakdown of the overall security system of the bank. Losses of life, threat to
intellectual property, damage of physical assets and deterioration of the
bank’s reputation, are some of the incidents that characterize the security
risk.
h. System risk appears due to the
failure in any one or the entire system of the bank. It can be emerged due to
the failure or lack of integrity of IT system, inadequate IT systems,
unauthorized access, data corruption, model/software/methodology failure, inadequate
documentation of systems and processes etc.