A Credit Risk Analysis of Banks: The Users of Credit Cards Influences Financial and Operational Risk in Banks Leading to Credit Risk

  •  R. Shenbagavalli    
  •  V. M. Ponniah    
  •  S. Senthilkumar    
  •  P. Abirami    


Risk gives the source for opportunity. The concepts of risk and exposure have insignificant differences in theirmeaning. Risk refers to the probability of loss while exposure is the possibility of loss, though they are habituallyused interchangeably. The risk matrix explains that the risk analysis in which rows show the risks and columnsshow their probability of occurrence and their impact. Financial risk and operational risk occur through countlesstransactions of a financial and operational nature, including sales and purchases, investments and loans, andvarious other trade activities. The sample size taken for the study was 230 and the data was collected by way ofquestionnaire. The study was taken with an objective of analyzing the factors causing financial and operationalrisk and to examine the protective measures available for such exposures. The findings of the study were tosuggest the steps to minimize the financial risk and control the operational risk.

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