Question

. Discuss two (2) examples of non-financial risks currently faced by the Australian banking sector.

Answer 1

Two examples of non financial risks which are currently being faced by Australian banking sector-

A. Health crisis which is triggering a high employee turnover and loss of human resources to the whole organisation because an organisation always invest its money and resources into its human capital so loss of human capital although is non monetary, but it is highly significant to the overall cost of organisation.

B.political interventions into the monetary system because there is a high need to provide economic relief because there is a fear like situation in which there is complete shutdown into the economies and global demand is completely shut, so political parties are intervening in order to help the central bank to formulate monetary policies which can benefit the society at large and it is impacting the banks as monetary policies are directly related to banks.