—Risk provides the basis for opportunity. The
terms risk and exposure have subtle differences in their meaning.
Risk refers to the probability of loss while exposure is the
possibility of loss, although they are often used interchangeably.
The study was taken with an objective of analyzing the factors
causing financial and operational risk and to examine the protective
measures available for such exposures. The sample size
taken for the study was 230 and the data was collected by way
of questionnaire. The risk matrix explains that the risk analysis
in which rows show the risks and columns show their probability
of occurrence and their impact. Financial risk and operational
risk arises through countless transactions of a financial
and operational nature, including sales and purchases,
investments and loans, and various other business activities.
The findings of the study were to suggest the steps to minimize
the financial risk and control the operational risk. The various
factors determining the risk proportion at higher degree are
identified and protective measures are suggested to minimize
the risk involved. The customers must be aware of the pitfalls
of extra credit card charges, the cardholder must every time
ask for the explanation and the breakups for the charges
charged to know and understand the real usage of the plastic
—Credit card, credit card grievances, financial
risk, risk, operational risk.
R. Shenbagavalli, A. R. Shanmugapriya, and Y. Lokeshwara Chowdary
are with SRM University, Chennai, Tamilnadu, India (Email:
firstname.lastname@example.org; email@example.com; firstname.lastname@example.org).
Cite:R. Shenbagavalli, A. R. Shanmugapriya, and Y. Lokeshwara Chowdary, "Risk Analysis of Credit Card Holders," International Journal of Trade, Economics and Finance vol.3, no.3, pp. 219-222, 2012.