Bp Self Assessment

Bp Self Assessment
Thank you for providing a thorough self–assessment. Not only do I agree with the points you have raised particularly on your growth on the project,
but it also shows that you have clearly considered the opportunities in the next coming months to further demonstrate E and D Grade capabilities.
Whilst you have joined at the last lap of a 3 year s.166, you have joined at the start of the most complex and challenging phases of all in terms of system
design product/ proposition and operational practices; coupled with a very aggressive timescale with limited contingency and a sometimes challenging
client. There was a lot to get your head around at the start, but you have found your feet and are making valuable contributions across multiple
operational testing/ reporting work streams. Strengths 1.Technical knowledge / attention to detail As client activities in Phase 2/ 3a exceptions pots and
Phase 3b have ramped up in the recent months, you have become increasingly involved in multiple operational activities. This has given you the
opportunity to demonstrate your understanding of the project concept and apply your experience in assessing customer outcomes; and identify notable
development areas within the clients operational framework. You have also taken... Show more content on Helpwriting.net ...
This also stretching to client relationships, so much so that within 2 visits to Santander 3rd partly client (Box–it); you have not only built rapport with
the client, you have demonstrated your ability to raise issues in a manner that is constructive and collaborative with the client. Your approach and
performance of this this testing workstream gives me confidence that you are more than capable to manage the deliverables and client relationship (as
well as the complimentary cakes!) without the need for Management input or
... Get more on HelpWriting.net ...

Advantages And Disadvantages Of Parametric Approach
Parametric approach assumes that portfolio return follows a known distribution, such as normal distribution, lognormal distribution, and etc. Standard
deviation (SD) is taken as the dispersion parameter which takes into account all observations. Any large value will affect the value of volatility in
essence SD.
The most common model employed in practice is delta–normal distribution which utilizes both the expected return and standard deviation of returns in
which case, VaR can be calculated by using SD(Пѓ):
VAR(О±%)=–Ој+ПѓГ—z_О±
Limitations of parametric approach include: The need to assume a known distribution. For delta–normal method, it assumes the normality of the
distribution of returns. However, most assets exhibit skewed return distributions, and fat tails. With fat tails, the ... Show more content on
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This approach cannot work appropriately for assets with nonlinear relationships, such as options. Options do not have stable volatilities which could
lead to misstated VaR.
4.3 Monte Carlo Simulation Approach
Monte Carlo simulation approach is the most powerful and flexible approach which involves assuming a particular distribution specified by the user,
using computer software to draw random samples from the distribution and generating an enormous amount of outcomes. The selected outcomes will
naturally form a distribution, which will approximate the normal distribution. VaR is calculated in the same way as with the delta–normal approach by
using the expected mean, and volatility generated by Monte Carlo approach (Kaplan, Inc., 2014).
Disadvantages of Monte Carlo simulation approach include: It is subject to the professional knowledge and skills of the user who will input the initial
distribution. This model will base on the subjective opinions of the user. As a result, it is impossible to construct a perfect

The Impact Of Multi Layer Governance On Risk Disclosure
The Impact of Multi–Layer Governance on Risk Disclosure: Evidence from MENA Banks
Abstract
This paper examines the impact of multi–layer governance (MLG) mechanisms, consisting of board and ownership structures, Sharia supervisory board
(SSB) and country–level governance characteristics on the level of risk disclosure by banks. Using one of the most extensive datasets on MLG and
risk disclosure to–date from 14 countries in the Middle East and North Africa (MENA) region over the period of 2006 to 2013, we find a positive and
statistically significant link between our MLG measures and risk disclosure. Specifically, we find that governmental ownership, family ownership,
SSB, board size, non–executive directors and control of corruption, are positively related to bank level of risk disclosure whilst CEO duality, political
stability and absence of violence are associated negatively with risk disclosure, but statistically insignificant. Our empirical findings are largely in line
with the predictions of our multi–theoretical framework that incorporates insights from agency, signalling, legitimacy, and resources dependence
theories. Our findings are robust to alternative firm– and country–level controls, alternative MLG mechanisms and risk disclosure proxies, alternative
estimation techniques, and endogeneity problems.
Keywords: Risk Disclosure, Corporate Governance, Sharia Supervisory Board, Country Governance, MENA Banks, Multi–Theoretical Perspective.
JEL classification:

International Convergence Of Capital Measurement And...
1.Introduction
The 2008 Global Financial Crisis (GFC) and its aftermath had critically damaged the world economy with a drag in global economic growth.
Indubitably, the imprudence in which banks managed their risks and capital holdings were among reasons that caused the crisis. It raised the need for
industry reform, leading to G20's Basel III proposal in 2010 to strengthen the global capital framework by imposing stricter rules regarding capital and
liquidity requirements, as well as a focus on transparency, consistency and quality. 2.Regulatory Framework
Table 1 highlights the main differences between Basel I,Basel II and Basel III.
Table 1 Basel 1, Basel II and Basel III Basel IBasel IIBasel III
FrameworkOne size fits allInternational Convergence of Capital Measurement and Capital StandardsFirm specific and risk based
Minimum Capital Requirements8% Total Capital Adequacy Ratio (CAR)
4% Tier 1 8% Total CAR
4% Tier 1
4% Core Tier 1 10.5% Total CAR
6% Tier 1
4.5% Core Tier 1
Measure of Credit RiskStandardized Approach Standardized Approach
Internal Ratings Based (IRB) ApproachStandardized Approach
Internal Ratings Based (IRB) Approach
Measure of Operational RiskN.A.Basic Indicator Approach (BIA)
Standardized Approach
Advanced Measurement Approach (AMA)Basic Indicator Approach (BIA)
Standardized Approach
Advanced Measurement Approach (AMA)
Measure of Market RiskN.A.Standardized Approach
Internal VaR

Importance Of Banking And Finance Lawyers
APRA and its relevance to banking and finance lawyers
ARPA an independent agency and it is the prudential regulator of the Australian financial services industry. APRA is responsible for prudential
supervision of individual financial institutions and for promoting financial system stability. Practitioners need to have working knowledge of APRA's
role and powers as it oversees authorised deposit–taking institutions (comprising banks, building societies and credit unions), including being
responsible for the authorisation process.
APRA works together with the Australian Securities & Investments Commission (ASIC), the ReserveBank of Australia (RBA) for a coordinated
approach to resolve matters relating to the stability of the Australian financial system. These three agencies (APRA, ASIC and RBA) together with the
Australian Treasury form the Council of Financial Regulators (CFR). The CFR provides advice to the Australian Government on the adequacy of
Australia's financial regulatory arrangements.
ARPA also oversees generalinsurance and reinsurance companies, life insurance, private health insurance, friendly societies and a large part of the
superannuation industry. Many of these areas are also of relevant to practitioners.
Authorised Deposit–taking Institutions
ADI is short for authorised depositвЂ‘taking institution and is one of the most used abbreviations in the Banking Act 1959 (Cth) (Banking Act), being
the legislation that authorises ADIs.
As mentioned, ADIs include

Risk Management Cw1
RISK MANAGEMENT AND INTERNATIONAL INVESTMENT REPORT OF MARYLEBONE BANK
BFBL606.2 Risk Management and International Finance
Tho Cam Vu
Student ID: 13486903
Date: 30th May 2014
Word Count: 3,413
Student ID: 13486903
Date: 30th May 2014
Word Count: 3,413
ABSTRACT
Marylebone Bank is an UK–based bank and had certain investments within the country and international. Marylebone Bank is currently holdings
investments in five FTSE companies in banking industry, also holdings certain assets of cash and equity. The report sets the bank's capital requirement
with the requirement of Basel Accords in order to build up sustainable positive capital frequently to avoid losses, liabilities and liquidity. Firstly, the
report analyzes the risk ... Show more content on Helpwriting.net ...
Operational Risk12 IV. The Capital Requirement under different Basel Accords12 6. Under Basel 1(1988 BIS Accord)13 7. Under Basel 1(1996
Amendment)13 8. Under Basel 214 9. Under Basel 2.515 10. Under Basel 315 V. Conclusion17VI. References18
I. INTRODUCTION
As a risk manager of Marylebone Bank, the primary aim is making sure the bank's capital achieve an appropriate level to meet the obligations, be able
to pay off the risk–taking and bear the expense of unexpected losses. The Basel accord is applied as a guideline to maintain the risk rate to minimum,
avoiding financial clashes. The report examines variety of methods in order to estimate three key risk capital charges in financial institutional
management, which are market risk, credit risk and operational risk.
II. MARKET RISK CAPITAL CHARGE ESTIMATION
There are five companies have been chosen, all of them are in the banking industry and members of FTSE100. They are Barclays, HSBC, Lloyds

Banking, The Royal Bank of Scotland and Standard Chartered. All the historical adjusted close is collected from Yahoo! Finance. 1. Variance–
Covariance Method
The first method to be applied is Variance–Covariance method as to calculate the returns of each company in 500 financial days, in order to calculate
the covariance between the returns of two companies respectively. Combines with the value of assets, which are

Operational Risk Management
Operational Risk Management, otherwise known as ORM, is defined as a continual recurring process which includes risk assessment, risk decision
making, and execution of risk controls, which results in acceptance, mitigation, or avoidance of risk. It is the oversight of operation risk, which is a risk
arising from execution of a company's business functions. It is a very wide concept which focuses on the risks arising from the people, systems and
processes through which a company operates. It also includes other categories like fraud risks, legal risks, physical or environmental risks. As for
ORM, some include the risk of loss resulting from insufficient or failed internal processes and systems; human factors; ... Show more content on
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It is an expressive list of the threats that currently affect the organization with estimates of probability. The latter identifies weaknesses in the business
that allow threats to spread with great disruptive effect. The assessment combines impact analysis and probability data to prioritize the plugging of
gaps, proposing, cost–justifying and comparing strategies for improvement.
Then we have what is called "continuity planning" which offers the ultimate backstop where risk improvement measures have known to be
unsuccessful or were unsuitable and the organization faces great disaster. It identifies what people, processes, systems, and other structures must be
provided to the firm in good time to guarantee and preserve its ability to exist.
Last but not least, we have "assurance", which is nothing but a set of activities that help guarantee that your continuity provisions work. Training
encourages staff to build up a consistent understanding of risk and continuity issues , building familiarity with aspects that could affect them. Periodic
review or audit ensures your continuity provisions still reflect the needs of the business. Preparation and testing offer controlled means of simulating
real incidents, ironing out problems under safe conditions
In addition to this, both the U.S. Department of Defense and the U.S. Navy have come up

Key Features Of A B2C E-Commerce Model
B2C E–commerce Model
The following are the key features of a B2C Model
a. Heavy advertising required to attract large number of customer
The results are intended to cause the possible purchaser to buy a certain product from LIVRO within a short time and to create awareness for LIVRO's
content after implementing its advertising strategies.
b.High investment in terms of hardware/software.
There is no part of the present economy that technology does not consider and that does not rely upon the technology area to increase quality,
productivity, and/or profitability. With the rise of technology, having high investments on the said area can increase the probability of a higher yield
for the company. It may be in a form of profit or brand awareness.
c.Support or good customer care service
With the ease of access in e–commerce today, there is an impersonal ... Show more content on Helpwriting.net ...
The business shall identify itself into two main industries: the Book Retailing Industry and E–commerce Industry. The Book Print Industry has been
decreasing as a result of the persistent growth of present technology. However, the aforementioned statement does not stop the circulation and sale of
books within the Philippines. Print sales fall, as shown by all signs, is not showcasing that there is a shift to more technology–based materials, since the
NBDB survey has showed "a tiny six percent of those reading in digital". 16
The Internet has paved a way for consumers to be more enticed to buy products in its online platform proving where a study conducted by Visa
International stated that "almost nine out of 10 Filipino consumers sort out their shopping online. The study also disclosed that those who choose to do
their shopping online devote an average of 6.2 hours regularly and in relation, 72% of the respondents have been shopping online for the previous 12

Essay Risks Associated with Operational Plans
Learning Outcome 1: Be able to align objectives of own area of responsibility with those of own organisation – this has previously been discussed and
evidence passed on.
Learning Outcome 2: Be able to implement operational plans in own area of responsibility
2.1 Assess risks associated with operational plans and include contingency agreements; Within the third sector the majority of funding that we receive
is restricted which limits where the money can be spent and means that it can only be spent on the purpose for which it is assigned. With regards to the
projects that I run this is the situation with all of the funding streams, all of the money that I manage is assigned to pre contracted outcomes with set
reporting dates. I have ... Show more content on Helpwriting.net ...
For example the Bristol City Councils Community Investment Team recently had a funding grant available. Two years ago when they know they
would be opening the grant up they published a time line which included consultations, bid submission dates, interview dates, notification of
successful bid dates and then the grant start date. This allows us as an organisation to factor in the dates one for availability and planning but also for
factoring in the money for budget consideration knowing that if we are successful we will receive more money which will be contributed to our core
costs which will have a positive impact on all other services. We find that all external stakeholders will provide us with all future dates from the onset
of a funding opportunity.
2.3 Implement operation plan within own area of responsibility; The operational plan that I have submitted is from my area of responsibility, this has
been devised by using the organisational strategy and working out my areas on responsibility. This allows me to have an end goal and then Ineed to
plan how to achieve it. Once this is done I can work out a step by step plan of what needs to be done and by whom. This is all added to the plan
along with any other obligations that will arise like staff supervision and appraisals and monitoring. I can then arrange the plan so that it is ordered by

Credit Risk Essay
Credit risk has been the subject of considerable research interest in Banking and Financial communities, and has recently drawn the attention of
statistical researchers. The exposure to credit risk continues to be the leading source of problems in the banking industry and as a result needs to be
managed. Credit risk is identified as a core pillar for the viability of banks and credit institutions (Michael et al., 2011)
According to Industry insider's opinion focusing on big lenders had damaged the reserves of banks after numerous instances of loan defaults. More than
half the banks in the country are at risk of becoming bankrupt after losing their capital reserves to high risk big loans. Loan defaults have damaged the
banking sector, ... Show more content on Helpwriting.net ...
According to the Bangladesh Bank report, banks have increased their transition to big loans between 2015 and 2016, with three borrowers controlling
the fates of nearly 23 banks. If the top 10 borrowers defaulted, then 37 banks would fail to maintain adequate capital, and if only the top three
borrowers defaulted, then 23 banks would fail at the same time.
Former Bangladesh Bank Governor Dr Salahuddin Ahmed told the Bangla Tribune: "Dishonest officials and borrowers are primarily at fault for the
current situation with the banks. The officials have given out high risk loans to big borrowers. Banks stand more risk from one big borrower
defaulting as opposed to 100 small borrowers defaulting."
Beximco, Hallmark, T and Brothers and 12 other industrial groups have taken out 52% of state–owned Sonali Bank's loans, totalling Tk19,966 crore.
Twelve industrial groups have taken out 29% of Janata Bank's loans totalling Tk11,500 crore. Similarly, 13 groups have taken out 23% of Agrani
Bank's loans. An increase of 3% in loan defaults would create a capital shortfall in five banks, a 9% increase would create a shortfall in 27 banks, and a
15% increase would create a shortage in 35 banks. Tk32,181 crore of all loan defaults are held by five banks, accounting for 51.8% of all loan defaults.
According to market risk indicating that a 1% decrease in interest rates would create a capital shortage in five

Operational Risk Case Study
8.2.4 Operational risk. The airline industry is subject to extensive government regulation, and new regulations may increase operating costs. Airlines
are subject to extensive regulatory and legal compliance requirements that result in significant costs (Delta Airlines Inc., 2017). The Federal Aviation
Administration (FAA) from time to time issues directives and other regulations relating to the maintenance and operation of aircraft that necessitate
significant expenditures. The company expects to continue incurring expenses to comply with the Federal Aviation Administration (FAA) regulations.
Other laws, regulations, taxes and airport rates and charges have also been imposed from time to time that significantly increase the cost of... Show
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The airline industry has continued to experience a reduction in high–yield business travel and increased price sensitivity in customers' purchasing
behavior. The airline industry has continued to add or restore capacity despite these conditions. The company expects all of these events will continue
to have a material adverse effect on business, financial condition and operating results (Delta's Airlines 10–K p. 20, 2017).
Bankruptcies and other restructuring efforts by competitors have put Delta at a competitive disadvantage. Since September 11, 2001, several airlines to
reorganize under Chapter 11 of the Bankruptcy Code, including United Air Lines, Inc. the second largest U.S. Airways and several smaller competitors.
Since filing for Chapter 11 on August 11, 2002, U.S. Airways has emerged from bankruptcy, and recently announced that it is seeking additional cost
concessions from its unions (Delta Airlines Inc., 2017). Some companies have restructured their labor costs and lowered its operating cost base. These
reorganizations or restructurings have enabled competitors to significantly lower their operating costs. The airline industry is highly competitive, and if
Delta cannot successfully compete in the marketplace, business, financial

Bmv Case Study
There should be separate controls for if we comply or if the other agency comply with the MOU/MOA. Therefore, we need to revise the risk and add
another.
Revise Risk #5
"BMV does not transfer data required by MOU/MOA for data, hindering another agency impacting the BMV reputation."
Add Risk
"Other agency does not transfer data required by MOU/MOA for data, hindering the BMV operations."
There should be separate controls for if we comply or if the other agency comply with the MOU/MOA. Therefore, we need to revise the risk and add
another.
Revise Risk #6
"BMV does not comply with requirements agreed to in MOU/MOA, hindering another agency impacting the BMV reputation."
Add Risk
"Other agency does not comply with requirements agreed ... Show more content on Helpwriting.net ...
I've revised.
Original:
Transferring /sharing confidential data that is not allowed to be shared from inside the BMV could result in reputation issues or fraud.
Revised:
BMV receives data from an outside party; however, the data is mishandled or misappropriated resulting in legal action and reputation damage.
I'm not following the controls let's discuss.
One question we need to ask (note if to remind us for the next ORCA meeting) is if they inform Information Security about the data sharing and if
Information Security does anything regarding that information as those could be possible controls.

With the revised risk #5 & 6 the second aspect of this risk is covered. Therefore, the risk needs revised.
Original:
BMV and Agency cannot agree on terms of sharing and or the terms are not honored potentially impacting operations or reputation.
Revised:
BMV and Other Party cannot agree on terms for MOU/MOA resulting in the MOU/MOA not being completed hindering another agency or the BMV
impacting the BMV reputation or operations.
Would it go to the governor or would agency head attempt to resolve it. My understanding is that legal would meet with their legal if resolution
doesn't occur the agency heads would meet to try to resolve if resolution doesn't occur it would be escalated to the governor office for resolution.
Deleted the following risk since it would be covered by the revised risk #7.
"Agency or

The Risks Of The Wholesale And The Smes.credit Risk
In the recent past, there have been concerns in the companies and businesses such that they have to show their credit worthiness before they are given a
loan. The UK has been fluctuating due to global inflation rates and therefore this has caused uncertainty of the business. This has made the lending
institutions to be strict in evaluating the credit risks of the wholesale and the SMEs.Credit risk will measure the probability of a business getting a loss
due to a business failure of settling loans. This convectional credit risks results from the the possibilities of defaulting of the debts, an investment or
invoice. The defaulting of the loans is the major cause of the wholesale credit risk. Individuals or businesses will always default because of lack of
collateral or guarantors to settle the debts.
There are various methods that the banks will use to mitigate the wholesale credit risk. The bank is required to carry out operational and risks
management processes to ensure that all the documents that have been used to guarantee a particular transaction is legal, binding and valid. There is
therefore the need for the bank to carry out sufficient legal appraisal before a conclusion is made by the bank so as to recognize the credit risks. The
CRM techniques will reduce the wholesale credit risks significantly. Although this technique reduces credit risk, it consecutively increases other risks
such as market, liquidity and operational risks. It is imperative that the bank

The Global Financial Crisis
The global financial crisis has raised many concerns for the need to restructure the approach of risk and regulation in the financial sector (KPMG
2011). Figure. 4 has shown the structures of Basel III. It aims to increase the capital and liquidity of banks and therefore maintaining the stability in
banking sector with full effect in 2019 (Banks For International Settlements 2011).
EUROPE – Preparedness
On 26 June of 2013, Capital requirement regulation (CRR) and directive(CRD) has been adopted for Basel III in Europe. Basel III permits the capital
buffer increase gradually to 2.5% in 2019 (Banks For International Settlements 2011). There is minor deviation in adapting this approach in Europe.
Given that small institution may adapt Basel ... Show more content on Helpwriting.net ...
Secondly, banks will have a more accurate estimate of liquidity by doing "cash–flow forecasts and portfolio analysis"(Philipp et al. 2010, p. 16). By
having a better understanding, banks can then adjust their asset to "adjust their short–term asset and liability structure"(Philipp et al. 2010, p. 16) to
ensure they can fulfill the new capital requirement. More specifically, taking BNP Paribas as an example, it cuts dividend to increase retained earning
to boost CET1 capital and sell impair Greek sovereign debt to reduce risk weighted asset (Yuting et al. 2012).
From our point of view, banks are all computing different strategies regarding on their own company–specific risk. However, it is common for banks to
cut dividends in order to meet the CET1 requirement (Yuting et al. 2012), which deteriorate shareholders' interest.
Potential Challenges: (1) Capital stress (2) Funding stress
For simpler explanation, four banks from Europe are selected namely, BNP Paribas, Banco Santander, DeutscheBank and Unicredit for comparison.
The European Banking Authority (EBA) requires banks to reach a Common Equity Tier 1 ratio of 9% by the end of June 2012" (P.15HECparis).
This period is shorter than the one set by Basel III. This imposes extra stress on banks to increase their liquidity within a short time. Furthermore,
EBA has also decided a Stress Test in 2011 based on the RWAs, CET1 and buffer. Compared to other banks, Banco Santander in Spain would have the
largest shortfall of

Financial Globalization and Risk Essay
Introduction:
From the beginning of the 1990s, the global financial system has entered a phase of unprecedented restructuring, marked by the increasing integration
of financial markets and increased economic interdependence. This process, known under the name of financial globalization allows companies better
access to financing, offers investors a greater possibility of investment and thus increases the liquidity of the global economy.
However, this financial globalization has enormous risks. Indeed, creating an interconnection between national financial systems, it facilitates the
transmission of shocks, contagion . Thus, a local imbalance turns immediately into a systemic crisis as shown by the recent financial crisis. Disruption in
... Show more content on Helpwriting.net ...
The Basel committee was established by the central bank governors 40 years ago and since tried to strengthen the regulation, supervision and risk
management of the banking sector. The Basel 3 is basically rules built on top of the Basel 2 and 1 framework and contains primarily 5 key
improvements that will be explained in details further down the project. Basel 1 and 2 will shortly be explained but the main focus will be on the
Basel 3.
The bursting of the housing bubble in 2007 and the crisis that ensued highlighted the shortcomings of the banking regulation and forced the
international authorities to consider a new agreement on it. Thus the Basel Committee decided to force banks to implement this new agreement.
Problem area:
Basel III establishes a set of standards for the implementation of a liquidity ratio for international banks , a leverage ratio , counter–cyclical measures ,
a redefinition of equity and a review of the coverage of certain risks . This set of standards will help to strengthen the resilience of the financial and
banking sector in anticipation of further financial and economic stress , regardless of the source. All of its new measures that the Basel Committee has
developed to strengthen the regulation, supervision and risk management in the banking sector aims to strengthen transparency and communication
within banks,

Scenario Analysis for Basel Ii Operational Risk Management
SCENARIO ANALYSIS FOR BASEL II OPERATIONAL RISK MANAGEMENT
1Introduction: Scenario Analysis for Potential Catastrophic Losses1
2Addressing Operational Risk3
3Scenario Analysis in a Risk Measurement Framework5
4Scenario Analysis in a Risk Management Framework6
5Achieving Risk Measurement and Management6
6Conclusion: Benefiting from Scenario Analysis7
1Introduction: Scenario Analysis for Potential Catastrophic Losses "Are you saying that you want us to figure out how to lose R50 million?" asked
the risk manager for the fund technology and services unit of a large bank. "Obviously, you have no idea how our funds are managed or what extreme
measures we take to make sure that no money is lost."
With a hint of pride in his voice, ... Show more content on Helpwriting.net ...
Financial institutions have always recognized the importance of safeguarding customer data. However, the impact of data compromise has increased
substantially as identities have migrated from visual to digital. Scenarios like the ones mentioned above have become significant due to
never–before–seen levels of regulatory fines and litigation expenses.
The New Basel Capital Accord (Basel II) requires financial institutions to develop a comprehensive loss distribution so that they can more accurately
estimate their risk profile and reserve requirements. In particular, Basel II adds operational risk to the traditional categories of credit risk and market
risk that are currently used to estimate capital requirements.
2Addressing Operational Risk
By including operational risk in the calculation metrics for the New Capital Accord, Basel II has recognized that credit and market risks are not the
only exposures that a bank may face. The complexity of calculating operational risk is, however, compounded by the fact that the internal loss history
of a financial institution does not adequately account for all the operational risks and exposures faced by that institution.
To augment internal experiential data, Basel II recommends that financial institutions look to external events and scenarios. External loss data cannot
be readily used in capital calculations due to the inherent shortcomings of the reliability of

Essay on Managing Individual Behavior: Bringing Out the...
Essay on Managing Individual Behavior: Bringing out the Best in People
Victor Abraham Kargbo
18th July 2011
Critically evaluating the view that the only essential ingredient of a successful manager is the ability to handle people and relate in a caring and
meaningful way to the individuals being managed, it is expected that managers have technical skills but the bigger test is in the way they manage
people. This is perhaps the most critical and elusive skill set of all Weak people skills lead directly to lost productivity and ineffectiveness while strong
people skills boost productivity and effectiveness and will propel your career forward like no other skill set will, this is why to succeed as a manager,
you must know how to bring out ... Show more content on Helpwriting.net ...
Having high responsibility and commitment to work is also a necessary characteristic of a co–worker and by way of illustration, a punctual member
will help his or her team be successful in meeting deadlines which can also help him or her to overcome stress. Moreover, a co–worker who is highly
committed to the task can achieve high performance. When working together, it will be really annoying to other people if their colleague is always
late or does not concentrate on the job. Therefore, commitment and responsibility are among the most appreciated qualities of a co–worker. Managers
should encourage his or her employees to be committed to co–workers because this is one important benefit that the organization will enjoy and this
process will prevent false assumptions and attributions made about others when those do something that adversely affects one's own situation.
Rewards is another way managers use to bring out the best in people, the organization I am currently working has used rewards to bring the best out of
their employees. Standard Chartered is an international Bank who value and concern about operational risk, but for about two years ago the bank in
Sierra Leone has not be doing well in terms of operational risk. However, this has been turn around by the present manager by giving out rewards to
staff who when the risk team undertake their review and any unit happen to get a green, green will

в‰€в€
љ
F M A
G u i d e l i n e s on
These guidelines were prepared by the Oesterreichische Nationalbank in cooperation with the Financial Market Authority
Published by:
Oesterreichische Nationalbank (OeNB) Otto–Wagner–Platz 3, 1090 Vienna, Austria Austrian Financial Market Authority (FMA) PraterstraГ
џe 23, 1020
Vienna, Austria
Produced by:
Oesterreichische Nationalbank
Editor in chief:
GГјnther Thonabauer, Communications Division (OeNB) Barbara NГ¶sslinger, Staff Department for Executive Board Affairs and Public Relations
(FMA)
Editorial processings:
Chapter I and III: Roman Buchelt, Stefan Unteregger (OeNB) Chapter II and IV: Wolfgang Fend, Radoslaw Zwizlo, Johannes Lutz (FMA)
Design: ... Show more content on Helpwriting.net ...
xecutive Board
3

Contents
1 Causes and Deп¬Ѓnition of Operational Risk 1.1 Introduction 1.2 Deп¬Ѓ nition of Operational Risk 1.3 Characteristics and Importance of
Operational Risk 1.4 Case Studies 2 Methods of Operational Risk Management 2.1 Introduction 2.2 Organizational Framework Conditions 2.2.1
Framework 2.2.2 Roles and Responsibilities 2.3 Step–by–Step Introduction of Operational Risk Management 2.3.1 Starting Point 2.3.2 Raising
Awareness and Creating the Basis 2.3.3 Implementation 2.3.4 Enhancements and Ongoing Adaptation 2.3.5 Integration into Bank–Wide Capital
Allocation and Risk Management 2.4 Operational Risk Management as a Cycle 2.5 Risk Identiп¬Ѓcation and Assessment 2.5.1 Self–Assessment (Risk
Inventory) 2.5.2 Loss Database 2.5.3 Business Process Analysis 2.5.4 Scenario Analysis 2.5.5 Key Risk Indicators (KRIs) 2.5.6 Quantiп¬Ѓcation of
Operational Risk 2.5.7 Exemplary Approaches to Calculating Regulatory Capital 2.6 Risk Treatment 2.6.1 Risk Avoidance 2.6.2 Risk Mitigation 2.6.3
Risk Sharing and Transfer 2.6.4 Risk Acceptance 2.7 Risk Control 2.8 Risk Reporting and the Role of Communication and Information 2.8.1
Communication and Information 2.8.2 Reporting 2.9 Company–wide Risk Management 2.10 Operational Risk Management in Smaller Banks 2.11
Operational Risk Management by Securities and Investment Firms in Austria 2.12 Principles for the Sound Management of Operational Risk 3
Speciп¬Ѓc Measures of Operational Risk Management 3.1 Systems: Infrastructure

Impact of Operational Risk in Banking
UNIVERSITY OF SOUTH CENTRAL, LOS ANGELES
UNITED OF AMERICA
STUDENT NAME: BENJAMIN AGYAPONG–SARQUAH
STUDENT ID NUMBER: 7250653
PROGRAM OF STUDY: BACHELOR OF ART BUSINESS STUDIES
COURSE OF STUDY: RESEARCH
PURPOSE OF RESEARCH: PROJECT RESEARCH
AREA OF RESEARCH: THE IMPACT OF OPERATION OF RISK IN BANKING
ASSIGNMENT: SUBMISSION OF PROJECT WORK CHAPTER ONE
Email:hamsasons@yahoo.com
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviews relevant literature on Standard Chartered Bank Ghana Limited, the Ghanaian Banking Industry, Regulation and Basel II, and
Operation Risk Management (ORM).
Standard Chartered Bank Ghana Limited
Standard Chartered Bank Ghana Limited (SCBGL) is a 65% owned subsidiary of Standard ... Show more content on Helpwriting.net ...
Retail segment of banking has brought products and services closer to customers at school campuses, hospitals, shopping malls, and petrol stations.
Service payment of utilities, payment of mobile phone unit transfers, payment of insurance fees and money transfers have characterised retail service
delivery in the industry. Other electronic transactions such as e–cards, e–statements, credit cards, debit cards and visa cards have been widely
introduced into commercial banking service delivery.
Competition is forcing the banks to dialogue and consider sharing service delivery platforms as a way of reducing cost and delivering more value to
customers. EZI Cash is a common automated teller machine (ATM) platform shared by Ecobank, SCBGL and SG–SSB. The EZI Cash can be found at

Shell filling stations and Nandos Food Courts. Some banks have also developed off site ATMs that can be found at petrol filling stations, hospitals,
stadia and some market centers. This collaboration has moved some of these banks to higher level of total networking and service delivery irrespective
of where the customer banks. Increased competition and customer sophistication has also forced banks to pay attention to client needs through
improved customer service and the introduction of products that meet the needs of customers. As such, banks are tailoring products to better suit the
needs of retail and corporate clients. Some of the new products include mortgage

The Basel Committee On Banking Supervision
The Basel Committee on Banking Supervision has developed a regulatory capital framework for operational risk measurement and introduced three
approaches: the Basic Indicator Approach (BIA), the Standardized Approach (SA) and the Advanced Measurement Approach (AMA).The identification
and measurement of operational risk can be viewed as following either the top down approach or the bottom up approach depending on the method
used to calculate the risk charge. In the top down approach, the financial data is extracted from the Balance Sheet and Profit and Loss statement. This
method may not result in the proper capturing of risks nor does it help in risk mitigation. This approach corresponds with the Basic Indicator Approach
and the Standardized Approach of Basel II Accord. The third approach of the Accord i.e. Advanced Measurement Approach, is consistent with bottom
up approach in which the regulatory capital requirement will be defined by the estimate generated by the internal operational risk measurement system
(Rajeev, 2004).
The Basic Indicator Approach (BIA)
The BIA is the simplest of the three approaches to calculate operational risk capital charge. This approach uses a single indicator i.e. gross income
as a proxy for a bank's overall operational risk exposure. The bank is required to measure the average positive gross income over the previous three
years. The years with negative gross income are excluded. The gross income is computed as net interest income plus net

Pros And Cons Of Basel III
Introduction After our throughout research on Basel III regulation and it's pros and cons, our group came to the conclusion that Basel III indeed
made the banking system to become more stable and safe compared to the time where there is no Basel III regulation. Before we begin to defense
our standpoint, we would like to have a short review of what exactly Basel III is.
Basel III is a regulatory reform measures to improve the banking regulation, supervision and risk management. Basel III was published in 2009 and
mainly because of widespread of credit crisis of global banking system. Therefore, the banks must maintain sufficient capital and proper leverage at any
point in time. We also know that Basel III is implemented right after Basel I and II, its main changes are to enhance the stability of banking system
when facing financial crisis and economic downturn. Apart from that, the content of banks' risk management and transparency are also strengthened.
The volatility of banking system can thus be reduced through strictly enforced Basel III standard and requirements.
The benefits of Basel III The Basel III can reduce the probability and severity of future financial crisis through stronger capital requirement; lower
leverage ... Show more content on Helpwriting.net ...
The wholesale and capital market funding are more sensitive to credit and price risk. They merely depend on local funding instead of international
ones. Off–balance sheet activities are also given attentions such as margin call, default insurance and options. These items are often neglected
previously however; it does count to the bank liquidity account. Interbank transactions are upgraded to electronic transfer which is instant and much
more reliable. These actions can minimize the liquidity risk of a bank and thus the default

Regional Land Revenue System Of Colonial India
Term Paper for the Course:
Regional Land revenue system in colonial India
Submitted by
Rammilan Singh Yadav
Registration No. 67259
Centre for Economic Studies and Planning
Jawaharlal Nehru University New Delhi
1.Introduction
After the breakdown of Bretton woods system of managed exchange rates in 1973 many banks incurred large foreign currency losses. on 26june 1974
so many banks had released payments of dutsche marks which was German currency at that time in Frankfurt for exchange of US dollar that was to be
delivered in US New York. Due to time difference herstatt stop doing operation between the times of respective payments. Responding to herstatt
debacle the G–10 countries, Spain and Luxemburg formed a standing committee for in 1974 under the bank for international settlements (BIS) known
as basel committee on banking supervision because headquarter of BIS is in Basel so this committee got its name from there. The committee
comprises representative from central banks of different countries and their regulatory authorities
2.Basel 1
The Basel committee on banking supervision (BCBS) in 1998 published a set of minimum capital requirement for banks. It focused entirely on credit
risk or default risk, these were known as Basel 1. Basel 1 defined capital requirement and structure of risk weights for banks. Under Basel1 assets of
banks were classified in five categories according to credit risk carrying risk weights of 0, 10, 20, 50, and 100 percent and no

Operational Risk Management in Banking Sector: an Overview
ReseaRch PaPeR
Commerce
Volume : 3 | Issue : 1 | January 2013 | ISSN– 2249–555X
Operational Risk Management in Banking Sector: An overview
Keywords
Rakesh Chutia
Assistant, State Bank of India Margheita–786181 Dist.–Tinsukia Assam
ABSTRACT Operational risk is inherent in all banking products, activities and processes and systems and the effective management of operational risk
is of paramount importance for every bank's board and senior management. With globalization and deregulation of financial markets, increased
competition combined with the advent of high–end, innovative, sophisticated technology tremendous changes have taken place in the products
distribution channels and service delivery mechanism of the banking ... Show more content on Helpwriting.net ...
Businessdisruptionandsystemfailures.Forexample,hardware and software failures, telecommunication problems, and utility outages.
Execution,deliveryandprocessmanagement.Forexample: data entry errors, collateral management failures, incomplete legal documentation, and
unauthorized access given to client accounts, non–client counterparty misperformance, and vendor disputes. OPERATIONALRISK MANAGEMENT
PROCESS: Operational Risk management generally encompasses the process of identifying risks to the bank, measuring exposures to those risks),
ensuring that an effective capital planning and monitoring programme is in place, monitoring risk exposures and corresponding capital needs on an
ongoing basis, taking steps to control or mitigate risk exposures. Identificationofoperationalrisk.Banksshouldidentifyand assess the operational risk
inherent in all products, services,activities,processesandsystems.Effectiveriskidentification should consider both internal factors (such as the bank's
structure, the nature of the bank's activities, the quality of the bank's human resources, organizational changes and employee turnover) and external
factors (such as changes in the industry and technological advances) that could adversely affect the achievement of the bank's objectives.
AssessmentofOperationalRisk.Inadditiontoidentifying the risk events, banks should assess their vulnerability totheserisk

What Are The Advantages And Disadvantages Of Bank Crisis?
Abstract
Rapid financial development did not just made the world better but also increase the possibility of encountering numerous crises like bank crisis.
Bank crisis or bank risk had been a global financial crisis as banks had a great impact on a country's economy as primarily control the stability of
currency and the creation of money. It may be primarily caused by credit, market and operation risk or by even failure in bank's internal operation like
human frauds or errors. This crisis may show its symptoms in its early age like indebtedness or insolvency of the banks. Treatment and prevention of
this problem is in the hands of high managements of banks and through the traits of the manager in handling this kind of problems. ... Show more
content on Helpwriting.net ...
It was also agreed by Coleman (2012) where he stated in his book that as banks begin to be countless specially the commercial banks, competitiveness
have been one of the major causes for the bank to invest money without the assurance getting back the money they used. This practice turned into a
total disaster as it made the bank uneasy to return the money to where it belongs.
Furthermore, in 1993, BSP or Bangko Sentral ng Pilipinas has been established to be the central bank in the Philippines. It has two main functions, to
create money and to sustain financial stability. This bank help other banks in preventing on encountering bank crisis as the. This bank help other banks
in preventing on encountering bank crisis as they monitor all the processes of each bank with the help of other organization like SEC or Securities and
Exchange

Operational Security Risk Assessment
Management SecurityAssignment of responsibilities
Continuity of support
Incident Response Capability
Risk Assessment
Operational SecurityControl of air–borne contaminants
Controls to ensure electrical power supply
Humidity Control
Temperature Control
Technical SecurityCommunications
Cryptography
Discretionary access control
Identification and authentication
Object reuse
System audit
When this process is complete, a security requirements checklist is created. However, with this security checklist comes with directives and
government regulatory sources that must be adhered to when developing such a document. The following examples of government regulatory include:
Industry practices
Security Policies, guidelines and standards
Privacy Act of 1974
OMB November 2000 Circular A–130
Federal Information Processing Standards Publications
CSA of 1987
The Questionnaires and information gathering documents are very important because they provide accurate information about the security of the
system and where improvements can be made to prevent further intrusions and remediate certain vulnerabilities within a system. The inputs for this
step include reports from prior ... Show more content on Helpwriting.net ...

This is to eliminate threats exercising a vulnerability system. This leads into the next category known as control methods. Security controls utilize both
technical and nontechnical methods. Technical controls serve as safeguards that are implemented into computer hardware, software, or firmware.
Nontechnical controls serve at more of a managerial and operational capacity for instance security policies, operational procedures, physical and
environmental security as well as personnel. Control categories for technical and nontechnical are categorized based from control categories. These
two categories are known as Preventive and

Risk Assessment : Ethical And Operational And Control...
Risk assessment:
Introduction: Threats are impending in nature; affording corporations little or no time every day to formulate the precise reaction. A threat assessment
plan must be developed in order to completely tackle situations which may cause damage to the firm. RISK, in protection terms is virtually the
possibility of loss, whereas a danger is the impending manifestation of risk within the near–term timeline. as an instance, an business enterprise might
discover itself uncovered every day danger in operations every day a natural disaster get up, however that chance will become a chance when that
herbal catastrophe starts every day occur. The threat assessment needs to analyze the threat of damage to the technical, operational and control systems
of the clinical organization. The chance assessment plan needs to counter each possible damage scenario that would occur and provide solutions and
safeguards against them.
Enterprise Description:
The business enterprise is a scientific practice with an electronic scientific report (EMR) that is called "Medco" which includes affected person facts.
This EMR is wanted on a 24–hour foundation so this requires a WAN connection to be made to be had 24 hours an afternoon to make sure that the
cardiologists have continual access to the patient records to keep away from loss of life.
Risk assessment approach:
Risk evaluation method is used to report and plan the method that's had to design a

Risk Management : Global Banking Crisis
"Risk is defined as the potential of losing or gaining something of important value. Values can be gained or lost when taking risk resulting from a
given action or inaction, foreseen or unforeseen" (Kungwani, 2014 ). Some argue that this simple definition was not understood until 2008, in which
the global banking crisis cried out a global need for stringent risk management practices to be put in place across all organization not matter how big
or small they may be. A strong, healthy and resilient banking system is key to economic prosperity, progress and development as banks are often at
the forefront between investors and savers. However, in 2008 the once resilient banking system came to a great tumbling collapse due several key
failures ... Show more content on Helpwriting.net ...
Commercial banks, insurance companies and financial institutions alike are operating in the business of risk on a daily basis. In the process of
providing complex financial services to clients across the world, they are accustomed to various types of risks. Due to this it is vitally important that
institutions operating in this line of business manage their operations effectively and efficiently. Before we critically examine the various risks which
financial institutions face, it is important that we define what risk management comprises of, in order to help gain a better understanding of the topics
that we will be analyzing. "Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it,
and mitigation of risk using managerial resources" (Berg, 2010, June). Now we have a definition of risk management, we can begin to look at the first
of several risks which financial institutions face. Firstly, operational risk is a risk that all organizations face, but more so for financial institutions due to
the nature of their day–to–day activities. Operational risk can be defined through the banking operational risk frameworks commonly referred to as
the Basel frameworks: "Basel II defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems
or from external events" (BCBS, 2006). Some categories of operational risk which the banking sector

The Third And Last Pillar Of The German Banking System Essay
Commercial Banks The third and last pillar of the German banking system consists of commercial banks also known in the third pillar as the market
discipline. The third pillar gives out more public disclosure and reporting requirements, compared to the other two pillars, with its increased
transparency. The amount of this increased disclosure is for giving the public and also the global market a more comprehensible vision of where the
bank stands in terms of risk. (Feig) With Universal banks being the more common type, responsible for about 75 % of all transactions carried out in
the banking sector, these banks offer a greater amount of financial services and are more varied than services of the specialized banks. These
commercial banks offer typical banking services such as setting up and watching over clients checking and savings accounts, process their payments,
lending money to clients, and as well as issuing bonds to clients. As of today, there lies roughly about 300 private banks all throughout Germany. It was
only until the crisis in 2008 where five major banks used to dominate the whole entire private sector. These five banks were Hypovereinsbank, Deutsche
Postbank AG, Deutsche Bank, Commerzbank, and Dresdner Bank. Those five banks are more internationalized than any other banks in the private
sector that primarily focus on business clients and the markets fluctuation activities. (Hassan) During the crisis in 2008, the bigger banks that Germany
came to rely

The Department Of Defense 's Operational Risk Management...
This paper will thoroughly define and explain planning and mitigation. Additionally, it will cover several factors that play a role in each category.
Specifically, this paper will look into several phases of planning to include: continuity of operations; mission essential functions; planning development;
and preparedness. Furthermore, it will look what types a factors should be looked at when making an organizations plans. In addition, this paper will
look at mitigating risks, specifically cyber and physical risk mitigation and some of the different approaches risks can be mitigated. Finally, this paper
will briefly look at the Department of Defense's Operational Risk Management process and how it ties planning and mitigation together.
Planning
Continuity of Operations
Continuity of Operations (COOP) is an effort within individual executive departments and agencies to ensure that Primary Mission Essential Functions
continue to be performed during a wide range of emergencies, including localized acts of nature, accidents and technological or attack–related
emergencies. To have an effective COOP, an organization must plan and mitigate all aspects of those functions for any type of situation which might
cause a disruption of operations. The COOP must also align with the organizations goals in order to continue efficiency. With proper planning and
mitigation, an organization can continue operations of their Mission Essential Functions (MEF). The first course of

Advantages Of Cainel Model Of Banks In Banks
CAMEL model of rating was first developed in the 1970s by the three federal banking supervisors of the U.S (the Federal Reserve, the FDIC and the
OCC) as part of the regulators' "Uniform Financial Institutions Rating System", to provide a convenient summary of bank condition at the time of its
on–site examination.
The banks were judged on five different components under the acronym C–A–M–E–L:
C – Capital Adequacy
A – Asset Quality
M – Management Soundness
E – Earnings Capacity and
L – Liquidity
The banks received a score of '1' through '5' for each component of CAMEL and a final CAMEL rating representing the composite total of the
component CAMEL scores as a measure of the bank's overall condition. The system of CAMEL was revised in 1996, when agencies added an
additional parameter 'S' for assessing "sensitivity to market risk", thus making it 'CAMELS' that is in trend today.
Based on the recommendations of the Padmanbhan ... Show more content on Helpwriting.net ...
This indicates the banks capacity to maintain capital commensurate with the nature and extent of all types of risks, as also the ability of the bank's
managers to identify, measure, monitor and control these risks. It reflects the overall financial condition of the banks and also the ability of
management to meet the requirement for additional capital. This ratio acts as an indicator of bank leverage. Capital base of financial institutions
facilitates depositors in forming their risk perception about the organization since Capital Adequacy is very useful for a bank to conserve and protect
stakeholder's confidence and prevent the bank from bankruptcy. Capital is seen as a cushion to protect depositors and promote the stability and
efficiency of financial system around the world. It also specifies whether the bank has adequate capital to grip unanticipated losses. It also acts as a
boundary for financial managers to maintain adequate levels of

Too Big to Fail Essay
Too big to fail?
In this essay I will be addressing the "Too Big To Fail" (TBTF) problem in the current banking system. I will be discussing the risks associated with
this policy, and the real problems behind it. I will then examine some solutions that have been proposed to solve the "too big to fail" problem. The
policy 'too big to fail' refers to the idea that a bank has become so large that its failure could cause a disastrous effect to the rest of the economy, and so
the government will provide assistance, in the form of perhaps a bailout/oversee a merger, to prevent this from happening. This is to protect the
creditors and allow the bank to continue operating. If a bank does fail then this could cause a domino effect throughout ... Show more content on
Helpwriting.net ...
Market risk is the risk associated with an investors day to day investments, that are affected by constant fluctuations in the markets. With investment
banking, a banks reputation is a critical in its success, reputational risk describes the trustworthiness of a business. A firm with a poor reputation will
not get as much business, meaning a bad reputation results in a loss in revenue. Concentration Risk is the risk showing the spread of a banks' accounts
to various debtors to whom the bank has lent to. The Basel II accord stated that 'operational risk is the risk of loss resulting from inadequate or failed
internal processes, people and systems, or from external events'. This risk covers the very wade basis of a company's operations, there are many
different factors involved here: people, employees actions and company processes.
Systemic Risk is the risk of the collapse of the entire financial system, Kay (2008) defined it as 'the tendency for the failure of a financial services
business to have an impact on many other businesses.' [ 16 ] The key to solving the problem of systemic risk is by naming and taxing the TBTF
firms and this will minimize systemic risk and it will level the playing field for firms who do not have the same guarantee of financial support as
TBTF firms do.
During the recent financial crisis, in the autumn of 2008, the Lehman Brothers bank collapsed. It was the biggest bankruptcy in history

Factor Analysis Of Information Risk
Factor Analysis of Information Risk (FAIR)
Factor Analysis of Information Risk (FAIR) is a framework for understanding, analyzing and measuring information risk (Violino, 2010). FAIR is a
Value at Risk (VaR) model for cyber security and operational risk and is considered an international standard by The Open Group. The FAIR model
quantifies information risk in financial terms using a scientific approach (RiskLens, 2015). Other risk models measure risk in qualitative terms based
on the opinions of subject matter experts, reliance on practitioner intuition and experience, industry lore and best practices (Violino, 2010). The
primary components of the FAIR framework are a taxonomy for information risk, standardized terms and definitions for information risk terms, data
collection criteria, scales for measuring risk factors, a computational engine for calculating risk, and a simulation model to measure risk scenarios
(Jones, 2005). The framework is used to develop threat–modelled information risk processes based on past experiences, upвЂђtoвЂђdate intelligence
feeds, recognition of trends, and a valuation of the organizational assets (Optimal Risk, 2015). Figure 1 – Threat Modeled Risk Framework Source:
(Optimal Risk, 2015)
The FAIR methodology's quantitative nature enables assessments to be performed in a consistent manner and the taxonomy allows various teams from
Information Risk, Information Technology and the business talk about risk in the same terms. This allows for more

Managing Currency Risk with Financial and Operational...
Introduction Overview of the hedging techniques In the financial market, almost all of companies need to face the currency risk. In order to manage
the currency risk, companies will use different hedging techniques, such as financial and operational hedging techniques. For example, money market,
futures contracts, options and forwards contracts are commonly used by firms, as well as operational hedging techniques. All of 4 types of financial
hedging techniques are short–term hedge. Money market is a part of financial markets for assets involved in short–term borrowing,lending, buying and
selling. Its features are high liquidity, lower risk, such as treasury bills. Futures contracts are future transaction for buying or selling, and made... Show
more content on Helpwriting.net ...
Telefnica, a Spanish telecommunication company, faced theexchange rate risk. Foreign currency risk primarily show up in connection with1. The
international presence of Telefnica, and the investment and businesses in other countries, such as Latin America, use other currencies, not the euro.
2. Liabilities denominated in currencies are different with its own country, and this debt is not likely to be conducted. At the same time, the thing
of depreciation in foreign currencies relative to euro, and the value of cash flow has a loss in such currencies. However, this loss is offset by the
reduction in the euro value of liabilities denominated. The level of exchange rate hedging was changed by the type of investment. In 2011, Telefnicas
net debt was equivalent to about 7,953m euro in Latin America(Telefnica 2011). However, its currencies in which this debt is denominated is merged
in percentage to the cash flow of each currency. the above hedge of exchange rate risks whether effective or not relies on which currencies depreciate
relative to euro. In order to avoid decrease of the Latin America currencies relative to the euro, Telefnica group use the dollar–denominated debt. For
instance, in spain, this is linked to an investment when it is suggested to be an effective hedge or in its own country. Meanwhile, the remaining
exchange rate exposure on the income statement will be limited by the Telefnica Group to manage the exchange rate

Risk Management : Expansion Effectiveness
1.INTRODUCTION
Risk management is expansion effectiveness in governing of these banks all things considered techniques tend to expand the corporate governance of a
financial institution. In times of volatility and fluctuations in the market, financial institutions need to prove their mettle by withstanding the market
variations and achieve sustainability in terms of growth and well as have a stable share value. Thus the need for an efficient risk management
framework is paramount in order to factor in internal and external risks.
The term Risk and the sorts related to it would refer to mean financial risk or uncertainty of financial loss. The RBI guidelines recognized in Oct. 1999
has identified and categorized the majority of risk into three major categories assumed to be encountered by banks. These belong to the clusters.
Credit risk
Market risk
Operational risk
The sort of risks can be on a very basic level subdivided in primarily of two types.
Financial Risk
Non–Financial Risk
Financial risks would involve all those aspects which deal mainly with financial aspects of the bank. These can be further subdivided into Credit Risk
and Market Risk. Both Credit and Market Risk may be further subdivided.
Non–Financial risks would entail all the risk faced by the bank in its regular workings, i.e. Operational Risk, Strategic Risk, Funding Risk, Political
Risk, and Legal Risk.
Problems of risk management are very much on the agenda in banking and finance. There is a

Marketing Management : Strategic And Operational Risks
Marketing management consists in distributing resources in order to produce net present value to shareholders among an environment of
market–product investment involving risks. A. Rappaport, 1981). As a result, a marketing strategy is defined as the method on how the organization's
resources are put at risk seeking to get competitive advantages (V. Cook, 1983).
Marketing risks are present in all the aspects of the marketing plan. We can identify five main areas of risks listed below:
–Strategic risks related to the strategic decisions taken
–Operational risks linked to plan's implementation
–Financial risks such as uncertainty over investments, currency fluctuation...
–Pure risks like force majeure such as climatic and wars
They can be ... Show more content on Helpwriting.net ...
–Regulations either national or international that would modify the market patterns.
We can further include additional more elaborated marketing risks occurring in market development.
The origins of marketing risks hold in modification if primary market demand and market share. Primary demand risks are closely linked to the size
of market segments and the cyclical nature of each segments. Market share risks derives from building, harvesting and balancing decisions coming
from the organization's objective, policy and search for differential advantages (V. Cook, 1987)
As a result, we identify the two types of risks together with their subdivisions:
1)Primary demand risks
–Segment size weight with different weights on segments according to their importance.
–Product life cycle stage affected through the magnitude of attraction of a market segment according it attractiveness by competitors. That's why a
growing stage of a market is riskier than a mature one because it attracts competitors and brings volatility. Variations in rates and product demand are
synonym of bigger risks. On the opposite, a mature or declining market is less unsure due to the future demand in less uncertain.
2)Market share risks First of all, the market share expectations is conditioned by the company's pricing and marketing strategy. We can find three main
strategies on the subject leading to

Chapter 3 Bec Case Study Answers Essay
Assignment #3 – Marked by Quiz 3 Feb. 16, 2005
Reading: Chapter 3
Assigned Questions from Text: BEC Case Study pp 113–117
Answer all of the questions about BEC:
Broadway Entertainment Co., Inc. Case Questions
1.The System Service Request (SSR) submitted by Carrie Douglass (BEC Figure 3–2) has not been reviewed by Professor Tann. If you were Professor
Tann, would you ask for any changes to the request as submitted? If so, what changes, and if no changes, why? Remember, an SSR is a call for a
preliminary study, not a thorough problem statement.
I would not ask for any changes, because the SSR describes the problem that Carrie would like to solve and describes the system that she envisions
that will solve the ... Show more content on Helpwriting.net ...
The application is new, so neither IS staff nor users are familiar with the application. The project initiator is also inexperienced. Overall this is a low to
moderate risk project. As a member of the student team, they might have risks associated with technical feasibility if they are not familiar with analysis
techniques and Web–based technologies. Carrie is taking a risk by having a group of students conduct the analysis that will eventually support her
request to BEC to build the new system, because the students are inexperienced with the systems analysis and design process.
6.If you were assigned to a team of students responsible for this project, how would you utilize the concept of incremental commitment in the design of
the Baseline Project Plan?
I would schedule formal review points after each phase of the project to ensure that the requirements are being met before allocating any more
resources to the project. I would provide status reports to Carrie asking for feedback, and I would consider using prototyping at least during systems
design.

7.If you were assigned to a team of students responsible for this project, when in the project schedule (in what phase or after which activities are
completed) do you think you could develop an economic analysis of the proposed system? What economic feasibility factors do you think would be
relevant?
A preliminary economic analysis could be done after defining the

Basel 2 is the second Basel after Basel Accords known as...
Basel 2 is the second Basel after Basel Accords known as Basel 1. By using Basel 2 in Australia, APRA (Australian Prudential Regulation
Authority) aims to arrange Australian Prudential standards with worldwide guidelines. The purpose of Basel 2 is to make better arrange regulatory
capital with the single risk profiles of financial institutions, a bank with greater exposure to the risk of peers who will hold more capital, while the
less exposed to the risk that will hold less capital. Picture 1.1 Picture 1.1 shows that Basel 1 (Accord) has a risk–weighted at one hundred percent with
$100 loan to the corporate entity and a total capital charge of $8. Beside that, through a standardized approach of Basel II, the corporate entity is rating
As banks become more innovative in their statistic techniques and methods, they are encouraged to look at the more risk a sensitive approach that is
related (capital reduction) incentives. Third, credit risk means financial institutions are allowed to choose from one of Standardization approach that
uses risk weighting standards and external assessment if available, or the Internal Ratings–Based (IRB) approach that uses data from internal risk
management systems. A securitization framework should be use for banks to involve in traditional and synthetic securitizations or similar structures.
Fourth, market risk details the risk engaged in trading book roles and treatment of counterparty credit risk so as to effectively catch event and standard
risk for trade–debt and equity equipment. Fifth, operational risk defined as " the risk of direct or indirect loss comes from the inability or failure of
internal processes, people and techniques or from exterior events ". 14 Banking organizations are offered three methods for determining operational
risk capital expenses including the Basic Signal Approach, the Standard Approach, and the Advanced Measurement Approach (AMA). The
supervisory review process (Pillar 2) is generally known as the 'supervisory review process' but it enforces responsibilities on both managers and banks.
It needs banks to have a process and strategy for evaluating and keeping their overall capital adequacy in regards to their risk

The Effects Of Risk Management On The United States
Crisis is a complex, devastating event or event that burdens the abilities of the people who are trying to manage and live with the event that has
occurred. As well as the effects it has on society, organizations, groups, or individuals as well as other things trying to exist during the event. One
example of Crisis is the October 1962 Cuban Missile Crisis, after the United States failed attempt to overthrow Castro Regime at the Bay of Pigs;
Castro began moving Soviet Nuclear missile into to Cuba to prevent any further attacks by the United States. Risk Management is the process that is use
when identifying, analyzing, and either accepting or mitigating of uncertainty in decision making. Essentially risk management occurs when there is a
In doing so this would make a risky situations become quite safe. The Normal Accident Theory (NAT) is no matter how hard we try, there will
always be serious accidents and crisis that will occur. Especially in a risky system a small problem can escalate into a larger problem in a matter of
seconds causing a catastrophic event. The event will then challenge the best safety systems and prevention techniques creating inevitable errors that
then defeat even the best safety systems.
The High Reliability Theory seems to be the best way to prepare myself for crisis management. The reason for this is it allows me to collect historical
knowledge of past crisis and use the information I learned to create a safer plan to prevent or reduce the effect of the same crisis or a new similar
type crisis was to occur. With the information I gained I would use it to assist and guide others in a way that would prepare them for the possible
arrival of a crisis occurrences. Actions that I believe should be taken in order to lower the risk of a crisis is to begin with a crisis management plan,
creating and properly training a team to handle the crisis situation, and to run crisis management drill to improve the effectiveness of the plan and to
ensure the team have the proper training. It is imperative that the crisis management plan be updated yearly, ensure that there is always a crisis
management team on standby, make sure they are well

The Risks Of Clearing And Settlement Systems
2. The Risks of Clearing and Settlement Systems There are various risks involved in clearing and settlement systems. In order to stabilize the Canadian
financial system, all systemically important clearing and settlement systems are required to be able to handle certain levels of risks sufficiently under
reasonable circumstances.(8) The risks are listed: Systematic risks: The risk to entire payment system due to the inability of one institution to meet its
obligations in a timely fashion. This may cause significant liquidity or credit problems, and, as a result, might threaten the stability of or confidence in
markets. Operational risks: The risk that deficiencies in information systems or internal controls, human errors, or management failures will result in
unexpected losses. Pre–settlement risks: The risk that a counterparty to a transaction for completion at a future date will default before final
settlement. The resulting exposure is the cost of replacing the original transaction at current market prices. Credit risks: The risk that a counterparty
will not settle an obligation for full value, either when due or at any time thereafter. Liquidity risks: The risk that a counterparty will not settle an
obligation for full value when due, but on some unspecified date thereafter. Settlement risk: The risk beard by all foreign exchange community
members for losing the principle. Principal risk: The risk that the seller of a security delivers a security but does not receive

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