Answer / Karuna Rani

Banks face several types of risks, including Credit Risk (the risk of borrowers defaulting on loans), Liquidity Risk (the risk of not having enough liquid assets to meet obligations), Market Risk (the risk of adverse movements in interest rates, exchange rates, or securities prices), Operational Risk (the risk of losses due to internal or external fraud, errors, or breakdowns in systems), and Reputation Risk (the risk of damage to the bank's reputation due to negative events).

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