Risk Management Policy of HSBC Bank
Risk Management Policy of HSBC Bank

Author(s): Yoana Yordanova
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: risk management; HSBC Bank; credit risk; liquidity management; financial risk control
Summary/Abstract: This paper explores the risk management policy of HSBC Bank, emphasizing its comprehensive approach to managing diverse financial and operational risks in a global context. It provides an overview of the primary risks HSBC faces, including credit risk, market risk, liquidity risk, currency risk, operational risk, interest rate risk, and position risk. The study categorizes and discusses potential risk events and their impact on the bank's financial stability and operational continuity. The paper further examines HSBC’s organizational framework for risk management, highlighting the role of senior management and specialized units in implementing internal rules, reporting protocols, and monitoring mechanisms. Key processes like asset-liability management, liquidity strategies, and risk control mechanisms such as stress testing are also analyzed to illustrate HSBC’s proactive approach to risk mitigation. Through a comprehensive analysis, the paper underscores the importance of an integrated risk management structure in safeguarding HSBC’s resilience against financial shocks and aligning with regulatory standards.

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