December, 2012

Ms-494: Risk Management In Banks

1.  "Bank Treasury has a major role in managing the different risks of a bank." Discuss fully this statement.

2. What do you mean by 'Interest rate risk'? Explain the different classes of interest rate risk.

3. What are 'Credit Derivatives' ? Discuss the various types of credit derivative instruments and explain the process of a credit derivative transaction with the help of an example.

4.  What do you mean by 'Market Risk' ? Discuss the factors that contribute to the market risk. Explain how can the market risk be managed.

5.  What is a 'currency option' ? Discuss some of the exotic options that are popular in currency derivatives market.

6.  What is 'operational Risk' ? Discuss the different steps involved in the process of managing operational risk.

7.  Discuss the roles and responsibilities of the Asset Liability Management Committee and the different offices/departments working under its supervision.

8.  What is the need for 'Risk Sensitive Incentive Systems' ? Discuss the important sound principles of compensation.