b) Securitization is the process of pooling and g homogenous illiquid loans into marketable securities. Explain the procesrepackagins of securization. What are the benefits of securitization?

Explain the goal for risk management in financial institution.

Effective risk management has to take an integrated and institution wide approach. Explain the benefits of effective risk management for financial institutions.

Development of innovative instruments has made it possible for financial institution to mitigate the risks they face. The instrument include derivatives of various types. Explain three tools that can be used for hedging interest rate risk.

Identify and explain three main causes of liquidity risk