Assessing Risk in Banks
Assessing Risks On Securities In The Banking Sector
RESEARCH METHOD
BFSL/10/FT
Bsc[Hons] Financial Services With Law
NAME STUDENT ID • VEERASAMI JEVIN 101772
• BOODHUN PREMA
• GORIAH ATHMA RAO
• ETIENNE ANNE-SOPHIE
• POINEN SELVI
[pic]
ABSTRACT
Assessing risk on security in the banking sector is a step in the risk management procedure. In this study you will have a glance of all types of risks that exist in the banking sector but you will also know each risks and their impact on securities. Risk can be deduced as mistakes occurring both by man and machines. We will also see how risks are faced and all procedures taken to find solution to tackle each risk in each sector of the bank. The study describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management. Risk management is a rapidly developing discipline and there are many and varied views and descriptions of what risk management involves, how it should be conducted and what it is for. A well functioning banking sector is crucial to the functioning of our financial system, but yet the banking sector has been very troubled by different crises during the last 20 years. Even though more rigorous rules and requirements develop through increasingly stringent Basel agreements the global financial crisis of 2008 show that it still exist a problem of financial risk management. The paper begins with exploring the current risk management practice and process in terms of identifying and understanding the nature of risk, in the perspective of a bank.
KEYWORDS: Risk Management, BASEL 1, 2, 3.
Table of Contents
1.0 INTRODUCTION 4
1.1 Introduction of the study 4
1.2 Background Information 5
1.3 Problem Statement 10
1.4 Significance of Research 11
1.5 Objectives of the study
RESEARCH METHOD
BFSL/10/FT
Bsc[Hons] Financial Services With Law
NAME STUDENT ID • VEERASAMI JEVIN 101772
• BOODHUN PREMA
• GORIAH ATHMA RAO
• ETIENNE ANNE-SOPHIE
• POINEN SELVI
[pic]
ABSTRACT
Assessing risk on security in the banking sector is a step in the risk management procedure. In this study you will have a glance of all types of risks that exist in the banking sector but you will also know each risks and their impact on securities. Risk can be deduced as mistakes occurring both by man and machines. We will also see how risks are faced and all procedures taken to find solution to tackle each risk in each sector of the bank. The study describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management. Risk management is a rapidly developing discipline and there are many and varied views and descriptions of what risk management involves, how it should be conducted and what it is for. A well functioning banking sector is crucial to the functioning of our financial system, but yet the banking sector has been very troubled by different crises during the last 20 years. Even though more rigorous rules and requirements develop through increasingly stringent Basel agreements the global financial crisis of 2008 show that it still exist a problem of financial risk management. The paper begins with exploring the current risk management practice and process in terms of identifying and understanding the nature of risk, in the perspective of a bank.
KEYWORDS: Risk Management, BASEL 1, 2, 3.
Table of Contents
1.0 INTRODUCTION 4
1.1 Introduction of the study 4
1.2 Background Information 5
1.3 Problem Statement 10
1.4 Significance of Research 11
1.5 Objectives of the study
References: van Greuning, Hennie and Bratanovic Snha Brajoiri. Analyzing Banking Risk, The World Bank, 2000 12 Shapiro, A., & Titman, S. (1986). An integrated approach to corporate risk management. The revolution in corporate finance , pp. 215-229. Smorenberg, D. (2004). Risicomanagement in de publieke sector. Enschede: University of Twente, master thesis (unpublished). Vaughan, E. (1997). Risk Management. University of Iowa, USA: John Wiley & Sons Inc. Williams, C., Smith, M., & Young, P. (1998). Risk Management and Insurance (Eighth ed.). Singapore: Irwin/McGraw-Hill.