Modern College of Business and Science Risk Management Worksheet each Task around 450 words except for scenario 3 = 700 words see files attached  i will a

Modern College of Business and Science Risk Management Worksheet each Task around 450 words
except for scenario 3 = 700 words

see files attached 
i will attached the lectuers hand, COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE PROGRAMME
B.Sc. in Accounting, Auditing and Finance
ASSIGNMENT BRIEF
Group Assessment Component: 50%
Student Name
Student ID
Semester
3
Summer 2020
Assignment Title
Risk Management in Banking Institutions
Module
Risk Management
Assessors:
Mr.M.Gnanendran
Start Date:
19th July 2020
Internal Verifier
Ms. Sujatha Bhat
Due Date:
9th to 13th August 2020
Required Work, Format and Grading
You must submit the assignment by the due date
Resources:
You need to demonstrate a confident application of the theories to the assignment task. The theoretical
underpinning of your observations and deliberations should also demonstrate a good understanding of the subject
by the way your analysis is structured.
You can access the Internet to research about the topic. You should demonstrate good academic practice by the
appropriate use of academic texts and journals that are properly referenced.
Guidelines and further information about assignment:
If the turnitin report generated indicates a similarity index percentage of 20% or more, a review of your
assignment is necessary to ensure the same is reduced to less than 20%.
The user ID and Password for submitting the soft copy of the report through TURNITIN is as follows:
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Submission time and date
Make sure that all the relevant details are complete. Assignments must be submitted by the due date.
Assignments not submitted on the due date will not be assessed. You may include diagrams, tables, etc.
Plagiarism Writing
Summary
1. Plagiarism occurs if you use somebody else’s work in an assignment or exam answer but fail to
state where you got the material. You need to be also very careful about the amount of words
you are using from somebody else’s work.
2. It can happen in any type of assessment where you are given the questions or tasks in advance.
3. If another student uses your work in his/her answer(s), both you and he/she will be punished
when caught.
4. Punishments for committing plagiarism can be very severe.
Details
Plagiarism is a form of cheating in which students use the work of others and present it as their own. It
may include all or any one of the following
1.
Copy extensively from the work of others (from sources such as books, magazines, journal,
websites, etc.) and submit the work as your own.
2. Copy other students’ work and submit it for assessment under your own name.
3. Allow students to copy your work and then submit it for assessment under their own name.
What happens if you are caught?
The examining body of CBFS may punish offending students in any manner that they deem fit. Typical
punishments may range from reduction in grades, making students re-sit modules and even failing
students on a module or an entire award. The college considers this form of cheating as a serious offense.
Therefore, be forewarned!
Tasks: The assignment makes up 20% of the student’s final marks for the module
Learning Outcomes
a.
Understand the different types of banks and the various functions performed by banks including
the Central Bank of Oman
b.
Understand the processes typically used to identify, reduce and manage specific aspects of risk
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c.
Know the specific key risks in financial services as defined by the Bank for International
Settlements
The scenarios and tasks are listed below:
Scenario 1
Banks are functioning as financial intermediaries in an economy. Businesses cannot
function without the involvement of banks’ support in the present economic conditions.
The banks are playing a major role in shaping financial stability of corporate companies
and contributing for financial planning of businesses. The success of the banking
institution is determining how successfully execute their main functions and managed the
risks which arising from business environment locally and internationally.
Task 1
Discuss the main functions of a bank with examples? Evaluate to what extent the banking
institution in Oman support the business to grow and support for the economic growth?
(5 marks)
Task 2
What are the different types of risks affecting the banks? Discuss each risk with
examples?
(5 marks)
Scenario 2
One of the major functions of the bank is asset transformation. Based on the deposits
received and paid-in capital, the bank should manage the lending process to its customers
and maintain the statutory reserve requirement which imposed by Central Bank of Oman.
The profits of the bank is depending on interest rate margin as a different between
interest paid on deposits (expenses) and interest income charged on loans (Income).
Task 1
Explain the bank balance sheet (statement of financial position) by differentiating the
bank assets and liabilities? Your explanation should be included trading book and
banking book of assets with examples?
(4 marks)
Task 2
You are required to make use of following information of ANZ Bank for the year ended
31st December 2019 to calculate.
a) Net interest income
(4 marks)
b) Profit before interest and taxes
(2 marks)
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Assets (OMR in
millions)
Cash
Government Bonds
Amount Annual
Return
45
0%
180
1.25%
Amount Annual
Cost
120
2%
265
2.25%
3.5%
Liabilities (OMR in
millions)
Short term deposits
Medium term
deposits
Long term deposits
Loans to local
government
Loans to SMEs
Loans to corporates
Totals
220
385
2.75%
245
585
1,275
5%
6.25%
Short term financing
Long term bonds
275
150
3%
4.5%
•
Fee income for the year ended 31st December 2019 is OMR 6.25 million.
•
Total overhead expenses for the year ended 31st December 2019 is OMR 23.5
million.
Scenario 3
The Central Bank of Oman (CBO) is the supervisor of all the banks in Oman. To protect
the interest of the depositors the CBO place many controls such as statutory reserve
requirements. The capital adequacy ratio (CAR) is one of the main ratios that the banks
are required to be fulfilled to comply with CBO regulations.
Task 1
Explain the importance of maintaining the capital adequacy ratio (CAR) by every
banking institution in Oman? Your explanation should be covered different tiers and
demonstrate your understanding of risk weighted assets (RWA).
(10 marks)
Scenario 4
Operational risk is the risk of some adverse outcome resulting from acts undertaken (or
neglected) in carrying out business activities, inadequate or failed internal processes and
information systems, misconduct by people or from external events and shocks.
Operational risk is a generic risk present in operations which exists even before any
deposit is accepted or a credit is granted by a bank. Operational risk is considered as a
risk characterised by idiosyncrasy. Financial institutions, especially the banks worldwide
have been seen placing increased emphasis on the management and measurement of
operational risk. Modern approach of Operational Risk management which particularly
stresses its measurement and linkage with the bank capital adequacy is considered as a
new frontier of value creation and efficiency in banks. The need of an explicit capital
charge to address a banks? operational risk exposure has been felt by the Basel
Committee of Banking Supervision (BCBS), as many banking institutions in the
developed countries were shaken by mega operational failures emanating from events of
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fraud, technological failure or due to control breakdowns resulting in collapse of age old
financial institutions like, Barings Bank of UK, Daiwa of Japan etc.
Task 1
Explain briefly what are the different types of operational risks affecting the banking
institutions?
(5 marks)
Task 2
Explain the Operational Risk Management (ORM) process and critically evaluate how
ORM process would support to improve the operational risk management process of a
bank?
(5 marks)
Scenario 5
In the world of banking, competition between commercial banks is increasing more and
more. Lenders are trying to satisfy customers in various credit services, which include
lending services. To keep themselves in the play, banks focus on improving credit
growth. However, higher credit growth will not truly bring higher profits if banks fail to
manage credit risk.
Task 1
Evaluate the importance of managing credit risks of a bank appropriately and discuss the
different sources of credit risks in a banking institution?
(5 marks)
Task 2
Discuss the credit risk management tools available for banking institutions?
(5 marks)
Detailed guidelines on references and bibliography are available on the Front Sheet. You are strongly
encouraged to familiarise yourself with this prior to completing your essay. Failure to include proper
references will result in a significant reduction in your mark.
Forming your Group
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You have the option of forming your own groups. However, the group size should not exceed
five members. You can form a group with three and four members as well.
The word count plan is given below.
1. 3 people in a group 2000 +1000 + 500 = 3500 words
2. 4 People in a group 2000 + 1000 + 500 + 250 = 3750 Words
3. 5 people in a group 2000 +1000 +500 + 250 + 125= 3875 words.
PLEASE ENSURE THAT ALL OF YOUR STUDENT NUMBERS ARE LISTED AT THE TOP OF
THE ASSIGNMENT
NAMING YOUR FILE: The file you upload on turnitin MUST be labelled as below:
RM GROUPWORK and ID of the group member submitting the assignment
Student declaration:
We certify that we have researched and prepared the work contained in this
assignment.
Signature: ___________________________
Date: ___________________
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Date: ___________________
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Date: ___________________
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Date: ___________________
END of ASSIGNMENT
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