1. Assume that a trader in HSBS has bought EUR 10,000,000 on Feb 03, 2020. Estimate one day VAR with 95% confidence interval for the FX position with Historical Simulation approach. 2. Compose some examples of losses from bank trading operations that demonstrate various realizations of operational risks: a) failed internal processes b) people and systems c) external events 3. Read the operational risk cases of Barings Bank and Societe Generale. What do these two cases have in common? Your answer should not take more than half a page. 4. What is the crucial element of the operational risk management system for bank trading operations? Explain why.