Problem: One of your newer clients is the Senior Lending Officer of a local bank. He is new to his position and does not have a lot of experience in risk management. You plan to meet with him over lunch to bring him up to speed on what he has to know about risk, particularly in the case of a bank.
- Give an example of measuring the transaction risk of an international business transaction.
- Among transaction, enterprise, and systemic risk, which does the Lending Officer have the most control over/least control over.
- What exactly can the Lending Officer do to mitigate the risks of systemic risk and enterprise risk?