Credit Risk is the threat of default by borrowers and transactional counterparties as well as the loss of value of assets due to deterioration in credit quality.
Operational risk is the threat of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk, while market risk is the threat of loss due to movement in prices on the holding of interest bearing securities, equities, foreign exchange, commodities and derivative instruments. 4.