Assignment:
You will conduct additional research for the bank you chose as the subject of your project.
Write the next section of your risk management plan in which you discuss the importance of risk capital to the banking industry, in particular, Wells Fargo Bank, Citigroup, or Bank of America.
Describe the steps taken by the bank to ensure it remains solvent?
Also describe the bank's process for evaluating RAROC.
Be sure to include a concluding paragraph.
In this paper, please address the following questions:
Why is risk capital important to your bank?
What is the relationship between risk capital and your bank's ability to remain solvent?
What steps does the bank take to remain solvent? What additional steps, if any, should the bank take to remain solvent?
How does the bank use RAROC?