chapter 9 maing consistent risk managementchapter 9 mak.pptVIP

In essence, wholesale banking services usually involve high value transactions. Using this knowledge, the individual responsible for marketing a small business develops specific plans to reach these targeted customers effectively. Those strategies allow companies to build relationships and loyalty in customers by better providing for their wants and needs.  Chapter 9 Making Consistent Risk Management I . Open Questions 1. What are the components to the management process? 2. How to create a MIS to monitor risk? 3. Which factors contribute to the working of EVA methodology? II. Teaching Plan This chapter will cover 3 hours. 2 hours for the introduction of background information and explanations of terms and the texts. And the other 1 hour for discussion and practice. III. Teaching Methods Translation of key sentences Paraphrasing of key words and expressions Explanation of new terms Summarizing of key passages Discussion of important issues Questions and answers: interaction between teachers and students IV. Background A major lesson of the global crisis is the imperative need for sound and comprehensive risk governance. Contemporary banking organizations are exposed to a diverse set of market and non-market risks, and the management of risk has accordingly become a core function within banks. Indeed, identifying, assessing, and promoting sound risk-management practices have become central elements of good supervisory practice. V. Special Terms Hedging instrument 套期工具 It is designated financial instrument whose fair value or related cash flows should offset changes in the fair value or cash flow of a designated hedged item. A hedged item is an asset, liability, highly probable transaction, or investment in a foreign operation that exposes an entity to changes in fair value or cash flows. 通常是企业指定的衍生工具，其公允价值或现金流量的预期可以抵销被套期项目的公允价值和现金流量的变动。被套期项目包括资产，负债，极有可能发生的交易，或在国外的运作等，这些被套期项目使一个实体受到公允价值或现金流量的变化的影响。 Franchise business 特许经营 the practice of using a