Instructions on Assessment:
To answer the questions below you are required to write about “BANK OF AMERICA” which is a Financial Institution to provide examples.
Questions to be answered are below:
1) 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)
2) 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)
References to use:
Whilst studying this module you are recommended to use the following journals as part of your independent study (available through our library and www.sciencedirect.com):
International Journal of Financial Services Management
Journal of Banking and Finance
Journal of Finance
Journal of Financial Services Research
Journal of Financial Stability
Journal of Money, Credit and Banking
Journal of Risk Finance
Bloomberg Professional Service
• Core Textbooks
• Saunders, A. and Cornett, M.M. (2014) Financial Institutions Management: A Risk Management Approach 8th Edition, New York: McGraw Hill.
• Crouhy, M., Galai, D. and Mark, R. (2014) The Essentials of Risk Management, New York: McGraw Hill (This is the recommended text for the APRM examinations).
• Young, B. and Coleman, R. (2009). Operational Risk Assessment: The Commercial Imperative of a more Forensic and Transparent Approach. Chester: John Wiley & Sons.
• Adalsteinsson, G. (2014) The Liquidity Risk: Management Guide- From Policy to Pitfalls. West Sussex: John Wiley and Sons.
• Hull, J. (2012) Risk Management and Financial Institutions, 3rd Edition. West Sussex: John Wiley and Sons.
• Supplementary Textbooks
• Bessis, J. (2010) Risk Management in Banking, 3rd Edition, West Sussex: John Wiley & Sons.
• Resti, A. and Sironi, A. (2007) Risk Management and Shareholders Value in Banking: From Risk Measurement Models to Capital Allocation Policies, West Sussex: John Wiley & Sons.
• Matz, L. and Neu, P. (Ed) (2007) Liquidity Risk Measurement and Management: A Practitioner’s Guide to Global Best Practices, West Sussex: John Wiley and Sons.
• Blunden, T. and Thirlwell, J. (2010) Mastering Operational Risk, Harlow; Pearson Education Limited.
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 style.