Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
“help.mbaassignments@gmail.com”
or
call
us at : 08263069601
ASSIGNMENT
Course Code :
MS-494
Course Title :
Risk Management in Banks
Assignment Code :
MS-494/SEM-I/2015
Coverage :
All Blocks
Note : Attempt all the questions and
submit this assignment on or before 30th April, 2015 to the coordinator of your
study centre.
1. Meet a Bank Manager of your
choice and discuss the role and importance of Asset Liability Management (ALM)
in a Bank. Also find out the important issues that are relevant in implementing
ALM programme. Write a note on your meeting.
Answer:Initially pioneered by Anglo-Saxon financial
institutions during the 1970s as interest rates became increasingly volatile,
asset and liability management (often abbreviated ALM) is the practice of
managing risks that arise due to mismatches between the assets and liabilities. The process is at the crossroads between risk
management and strategic planning. It is not just about offering solutions to
mitigate or hedge the risks arising from the interaction of assets and
liabilities but is focused on a long-term perspective: success in the
2. What is Project Finance? What are
its features and types? Discuss the credit Risk in Project Finance to a Bank.
Answer: Project finance is the long-term financing of
infrastructure and industrial projects based upon the projected cash flows of
the project rather than the balance sheets of its sponsors. Usually, a project
financing structure involves a number of equity investors, known as 'sponsors',
as well as a 'syndicate' of banks or other lending institutions that provide
loans to the operation. They are most commonly non-recourse loans, which are
secured by the project assets and paid entirely from project cash flow, rather
than from the general assets or creditworthiness of the project sponsors, a
decision in part supported by financial
3. What is Market Risk and how is it
different from other types of risk? Analyse and discuss how the market risk is
measured and managed by the Bank of your choice.
Answer: It is the possibility for an investor to
experience losses due to factors that affect the overall performance of the
financial markets. Market risk, also called "systematic risk," cannot
be eliminated through diversification, though it can be hedged against. The
risk that a major natural disaster will cause a decline in the market as a
whole is an example of market risk. Other sources of market risk include
recessions, political turmoil, changes in interest rates and terrorist attacks.
The two major categories of
investment risk are market risk and specific risk. Specific risk, also called
"unsystematic risk," is tied directly to the
4. Analyse the Organizational
Structure of Operational Risk in a Bank of your choice. Discuss the role of
Board of Directors in managing operational risk of that Bank.
Answer:Operational risk is known as the oldest
commercial bank risk, but until the late 20th century, only after a series of
international cases which cause significant loss because of the operational,
The Basel Committee, the international banking and academic circles began to
attach great importance to operational risk. And countries around the world
began to realize the importance of operational risk management. April 2006,
release of the new Basel Capital Accord which called for commercial banks to
quantify operational risk management
5. “One of the common risk sensitive
performance metrics in the Banking Industry is the risk adjusted return on
capital”. Discuss.
Answer:The risk adjusted return on capital or RAROC is
a financial measurement that allows analysts to take into account the effect of
risk when comparing profitability and performance across various businesses. It
is calculated by dividing the risk adjusted return (net income - expected loss
from risk + income from capital) by the economic capital. Higher risk projects
tend to bring higher rewards.
An adjustment to the return on an investment
that accounts for the element of risk. Risk-adjusted return on capital (RAROC)
gives decision makers the ability to compare the returns on several different
projects with varying risk levels.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
“help.mbaassignments@gmail.com”
or
call
us at : 08263069601
No comments:
Post a Comment
Note: only a member of this blog may post a comment.