This is a handout to accompany the Establishing a Modern Risk Management Department presentations. It provides case study questions. (The answers are provided in this series.)
The presentation focuses on the principles of bank risk management, core objectives, the "vicious cycle" of risk, components of an effective risk management process, a risk management framework and risk philosophy.
The presentation gives the definition of market risk, standard market risk factors, measurement of market risk and the Value at Risk (VaR) risk management approach.
This presentation describes liquidity risk management, market risk versus market liquidity risk, the three loops of liquidity risk management and monitoring tools.