Associated risks relating to share accounts:
- Interest rate risk - improper pricing of products constitutes the leading cause of interest rate risk;
- Liquidity risk - improper pricing and poorly timed duration can cause liquidity risk;
- Reputation risk - improper pricing and product mix, and illiquidity can result in reputation risk;
- Strategic risk - ineffective planning of the share product mix and pricing policies can result in strategic risk;
- Credit risk - allowing members to overdraw accounts can result in credit risk to the organization;
- Transaction risk - improper transaction processing and controls of share account types and processing failures can cause other risks (e.g., interest rate risk, liquidity risk); and
- Compliance risk - inadequate or ineffective compliance policies regarding account disclosures for interest rates, yields, or terms can result in loss exposure.