Niraj Adhikari

Risk Risk can be defined as uncertainty, unexpected outcomes, or chances of loss in the future. In the context of finance, business, insurance, and everyday life, risk is a fundamental concept that involves the chance of negative results or deviation from expected results.   Types of Risk: 1. Pure risk and speculative Pure risk Pure Risk refers to a type of risk where there is only a possibility of loss or no loss, but no chance of gain. It includes risks like accidents, theft, fire etc. where the best possible outcome is nothing happening, and the worst outcome is a loss. Speculative Risk Speculative Risk refers to a type of risk where there is a possibility of loss, no loss, or gain. It is common in activities like investing or gambling, where the outcome is uncertain, and there is a chance of making a profit or facing a loss. 2. Fundamental and Particular Risk Fundamental risk Fundamental risk refers to the risk that affects the entire market or economy, s...

  Cooperative Organization An organization established with the purpose of cooperation and mutual support among individuals of a community with common goals is called a cooperative organization .   In Nepal, the establishment and operation of cooperative organizations are regulated under the "Cooperative Act 2074" . Principles of Cooperatives 1.     Voluntary and open membership Cooperative is Voluntary organizations where anyone can join a cooperative without discrimination based on gender, race, religion, or politics. Membership is open to all who can use its services and are willing to accept responsibilities.   2.     Democratic member control Democratic control in cooperatives ensures equal voting rights for all members, active participation in decision-making, and elected representatives who act in their best interests, promoting fairness, transparency, and collective leadership, based on the principle of one member...

  Chapter 5 Commercial Banks Commercial Bank A commercial bank is a financial institution which accepts deposit from the public and provides business loans and facilitates various financial transactions. Commercial banks play a crucial role in the economy by facilitating the flow of money and supporting economic activities. As per NRB there are 20 commercial banks in Nepal (2082/03/31) Functions of Commercial Bank Deposit Function The prime function of the commercial bank is to accept all types of deposits from savers by offering different types of accounts. The customer can withdraw their money from their account in any time if they need. Providing Loan After receiving deposit commercial bank keeps certain portion of deposit as reserves (As directed by NRB) and remaining amount is available to provide loan to the customer for their business or other purpose. Investment of funds The commercial banks also make investment of excess amount of the bank in different type's securities ...