Modeling and measuring risks require clear definitions. Which risk one focuses on reflects one's objectives. Obviously, that risk concept is of interest to bank creditors, bank managers, and other stakeholders in banks. However, the financial risk that I focus on is different, for example, from the risk on which an investor in a bank stock might focus. While investors in the stock are, of course, interested in the risk that the bank might fail, that is not their only concern.
Stock investors are interested in the added risk to their diversified portfolio.
The second reason to distinguish between the measurement and the estimation of risk is that terminology affects perceptions. When we are told that banks use risk measurement tools, it provides the comforting connotation of precision. But when we then read that a bank has been surprised by large losses, we blame the risk measurement model. Both reactions are exaggerated. Models are not exact.