Importance Of Banking And Finance Lawyers

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
Reserve Bank 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 general insurance 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 deposit‑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
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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 Helpwriting.net ...
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

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

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

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,

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

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

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:

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 ...
Business disruption and system failures. For example, hardware and software failures,
telecommunication problems, and utility outages. Execution, delivery and process management. For
example: data entry errors, collateral management failures, incomplete legal documentation, and
unauthorized access given to client accounts, non–client counterparty misperformance, and vendor
disputes. OPERATIONAL RISK 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. Identification of operational risk. Banks should identify and assess the
operational risk inherent in all products, services, activities, processes and systems. Effective risk
identification 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. Assessment of Operational Risk. In
addition to identifying the risk events, banks should assess their vulnerability to these risk

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 I
need 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

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

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

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

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 the exchange 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

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

Scenario Analysis for Basel Ii Operational Risk Management
SCENARIO ANALYSIS FOR BASEL II OPERATIONAL RISK MANAGEMENT
1 Introduction: Scenario Analysis for Potential Catastrophic Losses 1
2 Addressing Operational Risk 3
3 Scenario Analysis in a Risk Measurement Framework 5
4 Scenario Analysis in a Risk Management Framework 6
5 Achieving Risk Measurement and Management 6
6 Conclusion: Benefiting from Scenario Analysis 7
1 Introduction: 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.
2 Addressing 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

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

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

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

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

≈√
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) Praterstraße 23, 1020 Vienna, Austria
Produced by:
Oesterreichische Nationalbank
Editor in chief:
Günther Thonabauer, Communications Division (OeNB) Barbara Nösslinger, 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 Deﬁnition of Operational Risk 1.1 Introduction 1.2 Deﬁ 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 Identification 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 Quantification 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
Specific Measures of Operational Risk Management 3.1 Systems: Infrastructure

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

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

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 more content on Helpwriting.net ...
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

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

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 I Basel II Basel III
Framework One size fits all International Convergence of Capital Measurement and Capital
Standards Firm specific and risk based
Minimum Capital Requirements 8% 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 Risk Standardized Approach Standardized Approach
Internal Ratings Based (IRB) Approach Standardized Approach
Internal Ratings Based (IRB) Approach
Measure of Operational Risk N.A. Basic Indicator Approach (BIA)
Standardized Approach
Advanced Measurement Approach (AMA) Basic Indicator Approach (BIA)
Standardized Approach
Advanced Measurement Approach (AMA)
Measure of Market Risk N.A. Standardized Approach
Internal VaR

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

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(σ):
VAR(α%)=–μ+σ×z_α
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 Helpwriting.net
...
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

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 ... Show more content on Helpwriting.net ...
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

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

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

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 ... Show more content on Helpwriting.net ...
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

Operational Security Risk Assessment
Management Security Assignment of responsibilities
Continuity of support
Incident Response Capability
Risk Assessment
Operational Security Control of air–borne contaminants
Controls to ensure electrical power supply
Humidity Control
Temperature Control
Technical Security Communications
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 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 Risk 12 IV. The Capital Requirement under different Basel Accords 12 6. Under Basel
1(1988 BIS Accord) 13 7. Under Basel 1(1996 Amendment) 13 8. Under Basel 2 14 9. Under Basel
2.5 15 10. Under Basel 3 15 V. Conclusion 17 VI. References 18
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

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

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

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, up‐to‐date 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

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 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, Deutsche Bank 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

Importance Of Banking And Finance Lawyers

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