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Security Risks: Despite strong security measures, electronic payment systems are vulnerable to hacking, data bdocHubes, and identity theft, potentially exposing customers sensitive information.
Systemic risk is measured as the difference, or spread, between the average distance-to-default (ADD) and the portfolio distance-to-default (PDD).
The Federal Reserve plays a key role in processing small-value electronic credit or debit transfers, such as direct deposits of payroll or recurring bill payments. The Federal Reserve Board issues paper currency (Federal Reserve notes). Federal Reserve Banks ensure adequate supply of paper currency around the country.
The Federal Reserve Policy on Payment System Risk (PSR policy) addresses the risks that payment, clearing, settlement, and recording activities present to the financial system and to the Federal Reserve Banks (Reserve Banks).
The Federal Reserve Boards market risk capital rule refers to regulations designed to ensure banks maintain a stable balance sheet. The MRR rule applies to U.S. banks where trading activity accounts for more than 10% of total assets or banks with assets over $1 billion.
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People also ask

Cash payments pose risks such as theft and loss, as physical currency can be easily stolen or misplaced.
Payment risk refers to the potential of losses due to a contract default or other payment event such as fraud, security bdocHubes or chargebacks. Companies regularly handling a high volume of online payments are subject to such risks.
Payment risk refers to the potential of losses due to a contract default or other payment event such as fraud, security bdocHubes or chargebacks.

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