Risk Types
Identify financial, operational, regulatory and reputational risks. Rank exposure, assign mitigation and monitor early warnings in a case recommendation.
- Financial
- Operational
- Regulatory
- Reputational
Watch out: Pair each risk with how you would reduce it.
On a case
Risks of launching a lending app on UPI.
- Financial: more defaults than planned
- Operational: fraud and identity checks
- Regulatory: digital lending rules
- Reputational: harsh recovery calls
Illustrative case. Figures and conditions below are assumptions for practice, not market data.
Build a small risk register for the illustrative lending app. Financial risk: defaults exceed the planning assumption; judge likelihood from comparable cohorts and impact from loss exposure. Assign the credit lead an early-warning measure such as overdue balances and a response such as tighter limits.
Operational risk: identity fraud passes checks; use verification failure patterns as a warning and give the operations lead a review process. Reputational risk: collection complaints rise; assign ownership, complaint monitoring and a pause-and-review threshold.
Regulatory risk can stop a launch entirely. Ask a qualified owner to confirm current lending and payment obligations before launch; this framework is not legal advice. Rank risks using evidence, record residual exposure after mitigation and avoid counting the same loss under several headings.
Sources and further reading
- HM Treasury: The Green Book (2026)
Guidance on comparing options, costs, benefits, uncertainty and distributional effects. This is appraisal methodology, not Indian legal guidance.