Calculating Interest Rate Risk

Using examples (Please choose one bank from either, HSBC Holdings PLC, Barclays PLC or 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:

  1. Interest Rate Risk
  2. Liquidity Risk
  3. Operational Risk
    (2500 Words, 75 Marks)
    Part B:
    Based on the interest rate, liquidity and operational risks identified in Part A, construct a fraud risk assessment framework of three associated 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.
    (500 Words, 25 Marks)

Total for Assignment: 100 marks

• Length maximum of 3000 words (with a tolerance level of 10%) which must be stated.
• Font – Arial 12, whole document being justified on both sides with 1.5 line spacing.
• Titles and headings should be in bold. Section headings should be numbered e.g. 3.1.
• Referencing must follow as:
McMath, M. (2016) Liquidity mismatch and maturity transformation: a study on the UK banks, International Journal of Risk and Return, Vol. 11(7), pp. 21-29

• Citation should be as:
McMath (2015) and if more than two authors should be as McMath et al., (2015)

• Quotations of more than 2 lines must be indented and in italics with the reference and page number stated. Shorter quotations should be in italics but do not need to be indented.
• Tables and diagrams should be inserted at an appropriate point in the text and should be easily readable.
• If you are attaching any appendices, please keep it to the minimum.

Sample Solution