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Am Bank Case Study

Autor:   •  October 22, 2016  •  Case Study  •  470 Words (2 Pages)  •  403 Views

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Am Bank

1. Credit risk

-Credit risk is the risk of loss due to the failure or unwillingness of a counterparty to meet its payment commitments. Exposure to credit risk arises from lending, securities and subordinate exposures. {Risk}

The Group has since January 2008, successfully implemented Basel II Standardised Approach. The Group embraces the extensive approach in perceiving collateral and guarantee obtained as hazard mitigants to lessen credit exposures in figuring the admin

2. Operational risk

Operational risk is the risk emerging from deficient or failed internal processes, individuals and framework or from external events on the Bank’s day-today operations that are executed to accomplish its business goals, which confine or keep such targets from being accomplished{risk}

For operational risk, the Group is currently applying the Basic Indicator Approach for risk weighted capital charge. The Group has effectively built up an operational risk management system which is currently being conveyed in stages for the different lines of business. The system allows the Group to proactively monitor operational risk through the modules of occurrence information, key risk indicators and risk and control self evaluation.{risk management}

3. Market risk

It is loss arising from changes in interest rates, foreign exchange rates, credit spreads, value costs and commodity prices.It can affect the value of financial instrument.{risk}

The Bank manages market risk using two methologies; the first being under ordinary market condition where the benchmark standard used is Profits-atRisk. Profits-at-Risk contains Value-atRisk (“VaR”) and loss limit thresholds. The second approach employs the benchmark standard of Capital-at-Risk to guarantee that the Bank is able to absorb unexpected market development based on historical shock scenarios.. {risk Management}

CIMB Bank

1. Credit risk

It is arising from losses due to the obligor, market counterparty or issuer of securities or different instruments held, failed to perform its legally binding commitments to the Group.{Risk}

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