Scotiabank

Credit risk: Scotiabank is exposed to credit risk, which refers to the potential for losses arising from borrowers or counterparties failing to meet their financial obligations. This risk arises from lending activities, investments, and trading activities. Economic downturns, industry-specific risks, and borrower default can all affect the bank's credit quality and loan portfolio performance.

Market risk: Scotiabank is exposed to market risk, which includes interest rate risk, foreign exchange risk, and market price risk. Changes in interest rates, exchange rates, and market prices can impact the value of the bank's assets, liabilities, and trading portfolios. Fluctuations in these market variables can affect the bank's profitability and financial position.

Regulatory and compliance risk: The banking industry is subject to extensive regulatory requirements and compliance obligations. Scotiabank must comply with various laws and regulations related to capital adequacy, liquidity, consumer protection, anti-money laundering, and data privacy, among others. Non-compliance with these regulations can result in financial penalties, reputational damage, and legal consequences.

Operational risk: Operational risk refers to the risk of loss arising from inadequate or failed internal processes, people, systems, or external events. This includes risks related to cybersecurity, technology failures, fraud, human error, and business disruptions. Operational risk can impact the bank's operations, customer service, and reputation.

Macroeconomic and geopolitical risks: Scotiabank's performance is influenced by macroeconomic factors such as economic growth, inflation, unemployment rates, and geopolitical events. Changes in economic conditions or political instability in the markets where the bank operates can impact its profitability, loan quality, and overall business environment.

Competitive risks: The banking industry is highly competitive, and Scotiabank faces competition from other domestic and international financial institutions. Intense competition can affect the bank's market share, pricing power, and profitability.