Submitted by sevans on Wed, 11/19/2014 - 4:21pm

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.
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