Task 11 (one or more answer options may be correct) Why is there a need for risk management in financial institutions such as banks to counteract, for example, bankruptcy risk? a) Exchanges of goods and services on markets take place through monetary funds channeled through the financial institutions. b) Risk management counteracts risky investments, which can affect the country's opportunities for foreign direct investment. c) Risk management contributes to counteracting financial crises. d) Risk management contributes to counteracting negative outcomes linked to adverse selection and moral hazard in banks' lending to potential borrowers.