Similiar to insurance companies, financial institutions such as banks view risk management as critical to the success and viability of their businesses and have therefore adopted strategies to manage the risks they are exposed to.

You are required to:

• Explain operational risks and give two examples of such risks faced by management at financial institutions. (5 marks)
• Discuss the importance of establishing an effective risk management policy at financial institutions to manage operational risks, giving an example of a risk management strategy used by financial institutions to mitigate such risks. (10 marks)
• What is the role of the Core Principles of Effective Bank Supervision as it relates to operational risks, in the effective management of financial institutions. (10 marks)

The following will apply:

• The document should be presented in a format that covers all the requirements above and in a format that is presentable.

• The number of words in the plan document should not exceed 3,000 words.

• Students should make an effort to include at least ONE external reference in the responses to support the expressed opinions and assertions made. Students can use practitioner publications or formal websites such as Business Week, Fortune, Harvard Business Review, Wall Street Journal, or professional websites to identify information in support of their responses. Students can also use academic research publications such as Academy of Management Journal, Journal of International Management.

• External references must be appropriately cited both in the body of the response as well as in a reference list at the end of the response, using American Psychological Association (APA) format.

• A similiarity Report should be one of your submitted documents.
• Please be guided by the rubric for this assignment