Monetized Risks in Structured Organization

Organizations can monetize interest rate risk, credit risk, liquidity risk, and operations risk by putting numbers behind them to compare and contrast. While strategic compliance and reputation are vital, they are more qualitative factors. Structuring around these monetized risks allows for dedicated employees managing each risk area, creating a separation between risk takers and risk reporters/evaluators. This approach aligns the risk assessment function separately from operational areas, allowing risk takers to operate efficiently.