Question no:1

You are required to take an industry from financial sector and Compose a report, addressing the

following:

a) Discuss the risk factors that are relevant to the chosen sector. As a guideline, you may consider

questions such as

-To what extend does the sector share common risks with the overall economy? ( 2 pages)

-How Group limits exposure to credit losses in the event of default by entering into master netting

agreements with certain market counterparties? . ( 1000 words)

-Explain how the Group's risk management of derivative contracts and application of hedging.

(Hint: you can look the annual report of bank and the details can be found in the risk review). ( 2 pages)

-Obtain as much information about the chosen firm as you can find and analyse the firm's risk

exposure in the context of your discussion. ( 2 pages)