Speaker 1: When we talk about enterprise risk management then we have to understand different types of risks. 1. We have the market risk, then we have operational risk, then compliance risk, credit risk and liquidity risk. All financial institutions such as banks, money service businesses, payment gateways, e-commerce businesses etc. face these broader types of risks. In order to understand each of these broader categories, let's first of all discuss about the credit risk. Credit risk is the risk that arises because of the borrower's or the customer's inability to pay back the loan or the funds that they have to pay. Let's suppose the banks give different types of loans to their customers but when the customers do not pay back the loans on the due date then it becomes the credit risk for the banks. Or we can say that the borrower's inability or unwillingness to pay back the loans or borrowed amount. And when this risk actually occurs then the credit losses happens in the financial institutions such as banks. Now what is compliance risk? Compliance risk is the risk that arises due to the non-compliance of applicable laws and regulations by the institution. There are different laws and regulations that institutions have to comply with such as anti-money laundering laws, know your customer related guidelines, GDPR regulations, data protection guidelines etc. So whenever the institution is not complying with the relevant regulations then the compliance risk arises. Market risk is basically related to the investment side when the institution places the funds into different avenues such as the money market, capital market or foreign exchange then the institution has to face the market risk and it arises due to the adverse movement in the market rates or prices of the commodity or the stocks or you can say the adverse movement in the interest rates or foreign exchange rates. Operational risk is the category where the operations of the institutions are disrupted and it happens due to the failure of the institution's people, processes, systems or the occurrence of external events. By people we mean that the employees of the organization let's suppose there is a frequent turnover of the employees in the institution then it is the operational risk because when the human resource leaves the organization then the operations get disrupted. Similarly when the internal processes are weak let's suppose the purchase process is weak or the sales process is weak or the marketing process is weak or the finance process is weak then the operational loss will occur to the institution. By systems we mean different softwares or applications that institutions use for different purposes so whenever the system fails then the operations are disrupted. Let's suppose the banks are using the core application system where the customer's information or data is stored now let's assume if the system gets corrupt then what will happen? The institution will lose all the critical information of its customer and in that event the institution might face deregulatory penalties or fines and the occurrence of external event means the events which are not controlled by the institution or let's suppose the hazards or earthquakes