[Solved] Consider the following statements regarding risk management framework: Statement 1: Risk management aims to eliminate all banking risks. Statement 2:... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding risk management framework: Statement 1: Risk management aims to eliminate all banking risks. Statement 2: Risk management involves continuous monitoring of risks. Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Check Statement 1
Risk management cannot eliminate all risks; it only manages them.
Step 2: Check Statement 2
Continuous monitoring is a core element of risk management.
Final Answer:
Only Statement 2 is correct → Option A
Quick Check:
Risk is managed continuously, not eliminated ❌

Quick Trick: Risk management = control and monitoring, not elimination.

Common Mistakes:

MISTAKES

Believing risk frameworks guarantee zero risk.

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Which of the above statements is/are correct?

Step 1: Check Statement 1

Step 2: Check Statement 2

Final Answer:

Quick Check:

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