what are the risks involved in investment banking?

Risks associated with investing in the banking sector include operational risk, market risk, cybersecurity, funding risks . It arises from the occurrence of some expected or unexpected events in the economy or the financial markets but All banks set up dedicated risk management departments to monitor, manage, and measure these risks. The risk management department helps the bank’s management by continuously measuring the risk of its current portfolio of assets, or loans, liabilities, or deposits, and other exposures. The department also communicates the bank’s risk profile to other bank functions and takes steps, either directly or in collaboration with other bank functions, to reduce the possibility of loss or to mitigate the size of the potential loss.