Interest Rate, Liquidity and Operational Risks Assignment
Instructions on Assessment:
The assessment for this module is by means of an assignment and this assignment accounts for 100% of the overall mark for the module.
Part A:
You have been offered a trainee risk analysts position of a Bank (Standard Chartered Bank or Lloyds Bank or Santander Bank for UK students) ( Hang Seng Bank, Bank of East Asia, Bank of China for Hong Kong Students). In your training period of 12 weeks provided by a consulting company (Lokanan and Sharma LLC) you attended lectures and seminars on the interest rate, liquidity and operational risks affecting the bank.
For your final evaluation, you are required to present a report critically analysing and demonstrating your understanding of the sources, measurement and management of the three risks to your bank.
1. Interest Rate Risk
2. Liquidity Risk
3. Operational Risk
Part B:
Based on the interest rate, liquidity and operational risks identified in Part A, construct a fraud risk assessment framework of three associated risks that your chosen bank is currently exposed to or will be exposed to in the foreseeable future. Pay particular attention to the current regulatory infrastructure in which the bank operates.
Referencing must follow as:
McMath, M. (2015) Liquidity mismatch and maturity transformation: a study on the UK banks, International Journal of Risk and Return, Vol. 11(7), pp. 21-29.