You are to assume the role of the risk management manager for Big Bank, a global company that offers traditional banking services including checking, savings, investments, online banking, loans, credit cards and more. The new president of the bank wants to meet with you to discuss the risks associated with the banking industry.
The banking industry has suffered a loss of reputation from many scandals including: setting up fake accounts, insufficiently fighting money laundering, improperly charging fees and security breaches.
The new president wants to learn as much as possible about risk and has asked you to identify and address the potential risks facing the banking industry. The president wants you to give examples of each of the following types of risk: regulatory risk, credit risk, interest rate risk, operational risk and strategic risk. You must suggest how Big Bank should respond to such risks.
