When operating in a heavily traded currency, a commercial and retail bank's treasury focuses on cover operations to mitigate risks. A cover operation involves taking actions to offset potential losses from the bank's business activities by hedging these risks in the market. This ensures that any adverse movements in exchange rates or interest rates do not negatively impact the bank's financial position.
References: No specific reference found in the document for this question. The provided answer is based on typical operations of bank treasuries related to risk management.

Credit derivatives historically carry several specific types of risk:
* Documentation Risk: The risk arising from the complexity and potential ambiguity in the legal documentation of credit derivative contracts.
* Definition of Credit Events: The risk associated with the precise definition of what constitutes a credit event, such as a default, which can be subject to interpretation and affect payouts.
* Occurrence of Credit Events: The actual risk that a credit event will occur, triggering the derivative contract.
Enterprise risk is a broader category that typically includes all risks faced by an enterprise, not just those associated with credit derivatives.
References
* Verified information on credit derivative risks from the document