Regulatory infrastructure for Interest Rate Risk Liquidity Risk Operational Risk

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Regulatory infrastructure for Interest Rate Risk Liquidity Risk Operational Risk

This paper focuses on Banking risk. Using examples (JPMorgan Chase & Co) you are required to present a report critically analysing and demonstrating your understanding of the sources, measurement, management and regulatory infrastructure of the following three risks:

Using examples (JPMorgan Chase & Co) you are required to present

Part A:
Using examples (JPMorgan Chase & Co) you are required to present a report critically analysing and demonstrating your understanding of the sources, measurement, management and regulatory infrastructure of the following three risks:

Firstly, Interest Rate Risk

Secondly,  Liquidity Risk

Thirdly, Operational Risk

Part B:
Basing on the interest rate, liquidity and operational risks in Part A, construct a fraud risk assessment framework of three associate 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. Also, Please note that all the supporting materials will be attached.

More details;

What Is Interest Rate Risk?

Interest rate risk is the danger that the value of a bond or other fixed-income investment will suffer as the result of a change in interest rates. Investors can reduce interest rate risk by buying bonds that mature at different dates. They also may allay the risk by hedging fixed-income investments with interest rate swaps and other instruments.

Liquidity risk is the risk that a company or bank may be unable to meet short-term financial demands. This usually occurs due to the inability to convert a security or hard asset to cash without a loss of capital and/or income in the process.
Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. Employee errors. Systems failures. Fraud or other criminal activity.
What is operational risk examples?
Examples of operational risk include Risks arising from catastrophic events (e.g., hurricanes) Computer hacking. Internal and external fraud. The failure to adhere to internal policies.

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