Credit Risk: The risk of financial loss due to customers or counterparties failing to meet their contractual obligations, such as defaulting on loans, mortgages, or lines of credit, particularly exacerbated during economic downturns.

Operational & Cyber Risk: The potential for losses resulting from inadequate or failed internal processes, people, and systems, or from external events, including system outages, fraud, human error, and sophisticated cyberattacks leading to data breaches or service disruptions.

Regulatory & Compliance Risk: The risk of legal penalties, financial forfeiture, or material loss resulting from a failure to comply with laws, regulations, internal policies, or ethical standards, including potential fines and restrictions from anti-money laundering investigations.