The top loan risks are those that are most likely to lead to a default on the loan. These risks can be divided into four categories: credit risk, interest rate risk, liquidity risk, and market risk.
The main risks of a loan.
Five dangers businesses face when applying for loans
The risks of cosigning a loan.
Co-signing a loan’s risks
Risk is the possibility you take when lending money that you might not get paid back in full or in part. Since commercial banks are currently only realizing returns in the single digits for conventional loans, the bank must also try to keep the level of risk it takes appropriate to this level of return.