Glossary

A bank run happens when many depositors try to withdraw their money at the same time because they fear the bank will fail, which can turn a worry into an actual collapse.

Basis risk is the chance that a hedge does not move in step with the exposure it is meant to offset, leaving a loss even though the hedge was put in place.

Board committees are smaller groups of directors, appointed by the full board, that study specific areas such as audit, risk, pay or appointments and report back with findings or recommendations.

Bow-tie analysis is a diagram that places one risk event in the centre, with its causes and preventive controls on the left and its consequences and recovery controls on the right.

Business email compromise is a scam in which criminals use forged or hijacked business email accounts, often posing as an executive or supplier, to persuade staff to send payments or change bank details.

Business ethics is the set of moral principles guiding how an organisation and its people make decisions and treat customers, staff, suppliers, competitors and society, including where the law is silent.

Bust-out fraud is a credit scam in which a borrower builds up a clean record and rising limits, then borrows or spends to the maximum across lenders and disappears without repaying.