Banking Risk 2

Module Title: Banking Risk 2
Word Limit: 3,000 words

 

Instructions on Assessment:

 

 

To answer the questions below you are required to choose one Global Systemically Important Financial Institution to provide examples.      i choose Bank of China

 

  • In the context of the most recent international regulatory frameworks, critically evaluate the role of the bank’s asset-liability committees (ALCOs) in measuring and managing interest rate and liquidity risk. In order to support this you are required to calculate and interpret appropriate measurement techniques.

(1500 Words, 50 Marks)

 

  • Using literature and examples, compare and contrast the operational risk management performance of your chosen bank with the dynamic regulatory and banking environment over the last three years. In response, construct a fraud risk assessment framework using these examples and future potential exposures. This framework should acknowledge the current legislative and regulatory infrastructure in which your bank operates.

(1500 Words, 50 Marks)

 

 

Assessment structure guidelines are as follows:

  • Length maximum of 3000 words (with a +/- 10% tolerance level) which must be stated.
  • Font – Arial 12, whole document being fully justified with 1.5 line spacing.
  • Titles and headings should be in bold. Section headings should be numbered e.g. 3.1.
  • Quotations of more than 2 lines must be indented and in italics with the reference and page number stated. Shorter quotations should be in italics but do not need to be indented.
  • Tables and figures should be inserted at an appropriate point in the text and should be easily readable.
  • If you are attaching any appendices, please keep it to the minimum.
  • Referencing must be APA 6th

 

 

Word limits and penalties

 

If the assignment is within +10% of the stated word limit no penalty will apply.

 

The word count is to be declared on the front page of your assignment and the assignment cover sheet.  The word count does not include:

 

·      Title and Contents page ·      Reference list ·      Appendices ·      Appropriate tables, figures and illustrations
·      Glossary ·      Bibliography ·      Quotes from interviews and focus groups.

 

Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count.

 

If this word count is falsified, students are reminded that under ARTA this will be regarded as academic misconduct.

 

If the word limit of the full assignment exceeds the +10% limit, 10% of the mark provisionally awarded to the assignment will be deducted.  For example: if the assignment is worth 70 marks but is above the word limit by more than 10%, a penalty of 7 marks will be imposed, giving a final mark of 63.

 

Note:   For those assessments or partial assessments based on calculation, multiple choice etc., marks will be gained on an accumulative basis.  In these cases, marks allocated to each section will be made clear.

 

 

Programme (Level) Learning Outcomes that this module contributes to:

 

Knowledge & Understanding:

 

  • Assess knowledge of contemporary professional practice in business and management informed by theory and research. [LO 1.1]

 

  • Appraise knowledge of business and management to complex problems in professional practice in order to identify justifiable, sustainable and responsible solutions [LO 1.2]

 

Intellectual / Professional skills & abilities:

 

  • Critique creative and critical thinking skills that involve independence, understanding, justification and the ability to challenge the thinking of self and others [LO 2.2]

 

Personal Values Attributes (Global / Cultural awareness, Ethics, Curiosity) (PVA):

 

  • Critique their personal skills and attitudes for progression to post-graduate contexts including professional work, entrepreneurship and higher level study [LO 3.2]

 

 

 

 

 

 

Module Specific Assessment Criteria

 

You will be expected to demonstrate the following learning outcomes at the end of the Module:

Knowledge & Understanding:

  • Develop knowledge and understanding of interest rate, liquidity, and operational risks. [MLO1]
  • Critically evaluate and develop an effective fraud assessment framework to prevent the fraud associated with the banking risk in the banking and finance institutions. [MLO2]

Intellectual / Professional skills & abilities:

  • You will develop the quantitative as well as qualitative evaluation while measuring and managing the interest rate, liquidity and operational risks. [MLO3]

Personal Values Attributes (Global / Cultural awareness, Ethics, Curiosity) (PVA):

  • You will become culturally and ethically aware of the impact of risk management systems on organisational decision-making and their antecedents’ effects on the banking and financial institutions. [MLO4]

 

 

 

 

Components Completely Insufficient

0-10

Weak

11-20

Adequate

21-25

Good

26-30

Very Good

31-35

Excellent

36-40

Outstanding

41-50

1. Interest Rate and Liquidity Risk Management Limited/No knowledge of interest rate and liquidity risk has been demonstrated. You haven’t attempted to example any application or interpretation. Your review of the interest rate and liquidity risk lacks sufficient details, mainly confined to the definitions. Further, you have only provided limited application. Your review of the interest rate and liquidity risk is restricted to background research and the lecture content but you have mentioned the relevant regulations. Further, you have only provided limited application. Your review of the interest rate and liquidity risk is reasonably researched covering most  measurement and management (ALCO) with generally sound arguments. Further, your application examples show a good level of understanding. Your review of the interest rate and liquidity risk is well researched covering measurement and management (ALCO) with rationalised arguments (as well as traditional theory). From your research, It is clear that you understand the regulations. The application examples have been selective to demonstrate your understanding. Your review of the interest rate and liquidity risk is critically researched with insightful arguments covering all traditional theory, measurement and management (ALCO). You have demonstrated further understanding via your application examples, which highlight how your bank addresses the regulatory requirements. You have produced an exemplary review of the interest rate and liquidity risk literature, providing critical arguments of how banks address the regulations on all aspects of identifying measurement and management (ALCO). You have fully understood how this risk affects your bank via your quantitative examples and have ascertained areas for improvement.
2. Operational Risk and Fraud Risk Framework Limited/No knowledge operational has been demonstrated. You haven’t attempted to example any application or provide fraud risk framework. Your examination of the operational risk lacks sufficient details, mainly confined to the definitions. Further, you have only provided limited application and the fraud risk framework is only a basic attempt. Your examination of the operational risk is restricted to background research and the lecture content but you have mentioned the relevant regulations. Further, the fraud risk framework has been applied correctly but needs further explanation. Your examination of the operational risk is reasonably researched covering modern day measurement and management with generally sound arguments. Further, your application examples show a good level of understanding. Your fraud risk framework shows you have investigated your banks examples using relevant media/academic sources. Your examination of the operational risk is well researched covering all key modern day measurement and management issues with rationalised arguments (as well as appropriate theory). From your research, It is clear that you understand the regulations. You have constructing an effective fraud risk assessment framework to mitigate against potential fraud risks for the bank of your choice. Your examination of the operational risk is critically researched with insightful arguments covering all traditional theory, measurement and management issues. You have demonstrated further understanding via your application examples. An excellent approach to construct an effective fraud risk assessment framework to mitigate against potential fraud risks for the bank of your choice. Further you have drawn from wider examples to compare and contrast. You have produced an exemplary examination of the operational risk literature, providing critical arguments of how banks address the regulations on all aspects of identifying measurement and management issues. You have fully understood how this risk affects your bank via your quantitative examples and have ascertained areas for improvement. An excellent approach to construct an effective fraud risk assessment framework to mitigate against potential fraud risks for the bank of your choice. Further you have drawn from wider examples to compare and contrast.