XXXXXXXXXXwords and references)
One of your newer clients is the
Senior Lending Officer of a local bank. He is new to his position and does not
have a lot of experience in risk management. You plan to meet with him over
lunch to bring him up to speed on what he has to know about risk, particularly
in the case of a bank.
Discuss the following specific
points:
•Give an example of measuring the transaction risk of an
international business transaction.
•Among transaction, enterprise, and systemic risk, which does the
Lending Officer have the most control over/least control over.
•What exactly can the Lending Officer do to mitigate the risks of
systemic risk and enterprise risk?
XXXXXXXXXXwords and references)
As a recently promoted manager, you
are learning about the importance of basing important decisions on good
assumptions; you thought you would practice by thinking through some major
decisions that have been made and what the assumptions that the decisions were
based upon must have been.
Research and find two situations in
which decisions were made. For each situation, describe the likely assumptions
that were made prior to each decision. Do you feel the decision was a good one?
Why or why not?