Classify the following situations under risk headings, discuss what the effects might be$,$ and identify who

might be responsible for managing these types of risk within the organization. $(30$ marks$)$

$1.$ A dealer commits the bank to a deal but fails to record the transaction properly and a dispute arises

some weeks later over the amount.

$2.$ A bank dealer lends money to a client within an authorised facility but the client fails to repay.

$3.$ A member of staff opens an incoming e$-$mail and finds a virus in an attached program.

$4.$ A senior dealer in a bank dealing room is dating a junior dealer.

$5.$ A senior dealer has a working lunch with a client and while at the lunch table takes a call on his

mobile phone. He quotes a price to the client and a deal is concluded.

$6.$ An Australian company owns premises in Johannesburg, South Africa. The South African Rand

falls in value by over $10\%$ in the space of a one$-$year accounting period.

$7.$ A local bank employs a sophisticated new value at risk programme upon the instructions of its

Head Office in Europe, Losses are substantially higher than the system predicts.

$8.$ The authorities for wrongly$-$selling its products fine a bank pension fund provider.

$9.$ A borrower of money at a fixed rate wishes to repay the loan one year earlier.

$10.$ In $1998$ the Russian government defaulted on its debt obligations, causing a $$flight to credit

quality$$