Section 1: Intro: The intro should focus on the overall process. Such things as risk-related committees
(most banks have at least an Asset-Liability Committee, or ALCO), existence or non-existence of a Chief
Risk Officer, reporting lines and Board of Director involvement.
Section 2 is Credit Risk where you focus on Define, Measure and Mitigate.
Section 3 is Market/Price/Interest Rate Risk where you again focus on Define, Measure and Mitigate.
Section 4 Conclusion: Your assessment of the quality and effectiveness of the bank’s risk management,
and your opinion: is this bank to big and too complex to manage.
Board (knowledge), Audit (Training), Committees (incentives and conflicts of interest)
How would process prevent a major risk from occurring?