1. Managing The 8th Risks: Referring to April 2012 case, CDS (Credit Default Swap) has brought JP Morgan - London into large trading losses known as rouge trader case. The loss was amounting to $6 billion. Question: Explain whether the losses suffered by Bruno Iksil (nickenamed the London Whale) was due to market risk, operational risk, legal risk, or credit risk? Support your answer with clear arguments.

2. Describe the relationship between CVaR, Expected Loss, and Economic Capital.