Based on your readings to date we observed that monitoring and stressing risks of the commercial banks gave the regulator insight about some possible vulnerabilities. Provide details as to the benefit to the financial institution and their consumers of measuring or mitigating against risks.
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- Based on your readings to date we observed that monitoring and stressing risks of the commercial banks gave the regulator insight about some possible vulnerabilities.
Provide details as to the benefit to the financial institution and their consumers of measuring or mitigating against risks.
Step by step
Solved in 2 steps
- Explain briefly what are the different types of operational risks affecting the banking institutions? Explain the Operational Risk Management (ORM) process and critically evaluate how ORM process would support to improve the operational risk management process of a bank?The tawarruq may expose the IFI to various types of risks, such as market, liquidity, credit and operational risks. These risks, which appear at various stages of transactions, may change in nature that may necessitate the establishment of a comprehensive and sound risk management infrastructure, reporting and control framework. Source: Tawaruq Bank Negara Malaysia (BNM) Guideline 2018 Based on the above statement, answer the following questions: a) Explain the phrase: "comprehensive and sound risk management infrastructure"?What is written in background of study for research on risk management mechanism in the banking sector from a customer's perspective?
- 1. Identify specific fraud risk factors present during PwC’s audits of the Lipper hedge funds. Explain how PwC should have responded to the fraud risk factors that you identified.Articles or any information from writers on "Importance of Risk Management mechanism in the banking sector from customer's perspective"Prudential regulation is generally seen to deal with: a. Systematic risks in the financial sector. b. The inherent risks of the profit seeking motive of a Financial Institution. c. Prudential breaches by the Financial Institution. d. The systemic risks that a Financial Institution can pose if its failure can easily lead to the failure of other financial institutions.
- Two types of financial risks faced by banks operating in the Financial sector and state how a risk management tool can be used to mitigate suck risk1. Explain two types of financial risks that are faced by banks operating in the financial sector. 2. Now, discuss how a risk management tool can be used in order to mitigate such risks .Articles or any information from a website on "Importance of risk management mechanisms in the banking sector from customer's perspective"
- ) You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them?Identify the various types of risks relevant to banking services and discuss the different strategies that are available to manage these risks.Briefly discuss in detailed summary each of the following questions. A. What are the key methods for measuring and managing liquidity risk?B. What are the three main methods for measuring and managing interest rate risk?C. Why is Enterprise Risk Management system important in a bank?D. What are the key objectives of bank regulation and supervision?