Finance General Topics

What’s the Risk?

by Brenda | October 7, 2020

What’s the Risk?

– Camron Selby

“Progress always involves risks. You can’t steal second base and keep your foot on first.”

-Frederick B. Wilcox

We all take calculated risks every single day. Driving your car, playing sports, or eating convenience store sushi. Risks are a part of life. If I asked you to calculate the risk of skydiving, chances are your response would be different from the next person based on your comfort level with high-adrenaline activities, fear of heights or falling, and other factors. Our acceptance of risk is typically based on our previous experiences, our level of risk tolerance, and what controls are in place to mitigate those risks to an acceptable level.

Similarly, banks face a myriad of risks that they must appropriately assess and monitor to protect their stakeholders (customers, employees, shareholders, regulators, etc.), determine strategic objectives, and even navigate unprecedented times like a global pandemic. However, while certain levels of risk are unavoidable, preparation and proper management can make all the difference.

Managing Risk

Risk can be defined as the possibility of an event occurring that will have an impact on the achievement of objectives. Banking, in general, involves several risks including credit risk, compliance risk, reputation risk, liquidity risk, strategic risk, operational risk, and so forth. The list goes on and on. Just like your rationale for calculating the risk associated with skydiving, banks address these risks based on several factors including past experience, customer demographics, location, risk appetite, and regulatory requirements. Generally speaking, banks have the same goals of rendering service and maximizing value for their customers and shareholders, but their methods of reaching those goals and the risks associated with them can vary depending on their risk tolerance, operational objectives, and financial performance.

Take credit risk for example. This is probably the biggest risk facing a bank. Banks will lend based on their areas of expertise. For Medallion Bank, our niche is in recreation and home improvement financing through third parties. Other banks may focus on commercial real estate, construction and development, student loans, credit cards, or small business administration (SBA) lending. Each of these lending areas offers unique advantages as well as risks not found in other loan products. Therefore, a bank’s policies and procedures should address those risks to provide consistent underwriting practices, in accordance with lending laws and regulations, to best meet the needs of its customers. A bank’s Board of Directors will identify goals and provide overall governance, and will empower management to work towards the achievement of those goals.

Risks are continuously evolving and never static. While elements of risk management certainly fluctuate, they generally include elements that measure potential impact and likelihood. Banks will create a risk profile that includes risk identification, risk assessment and prioritization (risk analysis), risk response, and risk monitoring. Each of these elements helps bankers create a culture that identifies trends and minimizes possible adverse scenarios to protect bank assets and maximize value, which are essential elements customers look for when choosing a bank.

Fine-tuning your Goals

2020 has been an eventful year, to say the least. At Medallion Bank, we have adjusted to the circumstances and changed how we operate. However, we continue to focus on our core competencies of consumer lending, which is what we’ve been doing for the past 17 years. Our desire is to put your mind at ease by assuring you we not only are aware of the inherent risks of banking but have taken the necessary steps to appropriately address and manage those risks. If you are thinking about purchasing a recreational product or making some upgrades to your home, let us reduce the risk of that decision by providing the financing to help make those dreams possible. In turn, you can focus your desired risk-taking on other areas of your life, especially if that involves jumping out of a perfectly good airplane.

Home Improvement

Hours of Operation Monday – Friday
8am – 6pm MT
Saturday
9am – 4pm MT

Holiday Closures

Please note: Holiday closures are not the same for the Recreation and Home Improvement Departments.

  • New Year’s Day
  • Labor Day
  • Memorial Day
  • Thanksgiving
  • Independence Day
  • Christmas
  • New Year’s Day
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving
  • Christmas
  • Day before Thanksgiving,
    Wednesday,
    November 26, 2025
    – Closing at 3:00 MT

    Day after Thanksgiving,
    Friday,
    November 28, 2025
    – Closing at 4:00 MT
  • Day before Christmas,
    Wednesday,
    December 24, 2025
    – Closing at 3:00 MT

    Day After Christmas,
    Friday,
    December 26, 2025
    – Closing at 4:00 MT

    Saturday after Christmas,
    December 27, 2025
    – Closed
  • New Year’s Eve
    Wednesday,
    December 31, 2025
    – Closing at 4:00 MT

    Day After New Years,
    Friday,
    January 2, 2026
    – Closing at 4:00 MT

    Saturday After New Years,
    January 3, 2026
    – Closed

Home Improvement Application Processing Open as Follows

Home Improvement loan application processing is open on the following holidays. All other departments are closed.

  • Martin Luther King Jr. Day
  • Columbus Day/Indigenous Peoples’ Day
  • Presidents’ Day
  • Veterans Day
  • Juneteenth
  • Martin Luther King Jr. Day
  • Presidents’ Day
  • Juneteenth
  • Columbus Day/Indigenous Peoples’ Day
  • Veterans Day

Recreation

Hours of Operation Monday – Friday
8am – 5pm MT
Closed Weekends

Holiday Closures

  • New Year’s Day
  • Labor Day
  • Martin Luther King Jr. Day
  • Columbus/Indigenous Peoples’ Day
  • Presidents' Day
  • Veterans Day
  • Memorial Day
  • Thanksgiving
  • Juneteenth
  • Christmas Day
  • Independence Day
  • New Year’s Day
  • Martin Luther King Jr. Day
  • Presidents' Day
  • Memorial Day
  • Juneteenth
  • Independence Day
  • Labor Day
  • Columbus/Indigenous Peoples’ Day
  • Veterans Day
  • Thanksgiving
  • Christmas Day
  • Day before Thanksgiving,
    Wednesday,
    November 26, 2025
    – Closing at 3:00 MT

    Day after Thanksgiving,
    Friday,
    November 28, 2025
    – Closing at 4:00 MT

    Day before Christmas,
    Wednesday,
    December 24, 2025
    – Closing at 3:00 MT
  • Day After Christmas,
    Friday,
    December 26, 2025
    – Closing at 4:00 MT

    New Year’s Eve
    Wednesday,
    December 31, 2025
    – Closing at 4:00 MT

    Day After New Years,
    Friday,
    January 2, 2026
    – Closing at 4:00 MT

Borrower Services

Hours of Operation Monday - Friday
8am-11pm MT
Saturday
9am-1pm MT

Holiday Closures

:
  • New Year's Day
  • Thanksgiving
  • Memorial Day
  • Christmas
  • Independence Day
  • New Year's Day
  • Memorial Day
  • Independence Day
  • Thanksgiving
  • Christmas

Welcome to Our New Website

Welcome to the newly redesigned MedallionBank.com. Our website now features a fresh look and includes a dedicated FAQ page for borrowers, as well as new content for strategic partners.

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