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Risks
1. Interest rate risk: Canadian Western Bank is exposed to interest rate risk if changes in interest rates cause a decrease in their profitability.
2. Regulatory risk: Canadian Western Bank is subject to the regulations of the Office of the Superintendent of Financial Institutions (OSFI). Regulatory risk is the risk that compliance requirements or changes in laws or regulations can negatively impact profitability.
3. Credit risk: Canadian Western Bank is exposed to credit risk when borrowers are unlikely to pay back their loans. If this happens, the Bank's income could be reduced, as it would not receive the interest income it was expecting.
4. Market risk: Canadian Western Bank is subject to market risk, which is the risk of a decrease in the value of investments due to changes in the market.
5. Operational risk: Canadian Western Bank is subject to operational risk due to potential disruptions of operations and processes, such as computer system outages, the introduction of new products, or operational errors.