1.

Risk mitigation is one of the main function/concern of bank in volatile economy. In course of business banks face different types of risks which may vary from one bank to another. a. Which are the major risks banks are exposed to and how they mitigate it? (5 Marks) b. Suppose the regulator asks one of the losses making Bank XYZ to close a few branches to reduce cost thereby make the bank more sustainable/profitable. But XYZ Bank refuses to close its few branches, citing some risk/s involved in the process. What are the risks XYZ Bank perceives if it closes a few branches. (5 Marks) ​

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