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Risks
1. Exchange Rate Risk: German-American Bank is exposed to exchange rate risk due to the dollar-euro currency pair. A large dollar increase or a decreasing euro may adversely affect the company's profit margins.
2. Interest Rate Risk: The company is also exposed to interest rate risk as the rate of return on investments or interest expenses on borrowings may vary with markets changes.
3. Regulatory Risk: German-American Bank is subject to regulatory risk due to changes in laws and regulations relevant to banking operations and financial products.
4. Credit Risk: The company is also exposed to credit risk due to changes in creditworthiness of customers and counterparties, which could reduce the value of the company’s assets.
5. Political Risk: The company is exposed to political risk due to changes in the government policies or attitudes towards the banking industry. This could adversely affect the company’s operations and profitability.