You are the risk manager of a large Australian Bank and face the following challenges. Explain the risk that you are exposed to and explain what you could to counter the risk. a) Your institution has more rate-sensitive assets than rate-sensitive liabilities. (0.5 page limit, 5 marks) b) You have heard that some traders in your bank engage in risky OBS trades that they are not authorised to do. (0.5 page limit, 5 marks) c) After diversifying into international markets your institution now holds a significant proportion of its assets in a foreign currency. (0.5 page limit, 5 marks) d) Your institution holds almost all of its assets in long-term securities. (0.5 page limit, 5 marks) You are the risk manager of a large Australian Bank and face the following challenges. Explain the risk that you are exposed to and explain what you could to counter the risk. a) Your institution has more rate-sensitive assets than rate-sensitive liabilities. (0.5 page limit, 5 marks) b) You have heard that some traders in your bank engage in risky OBS trades that they are not authorised to do. (0.5 page limit, 5 marks) c) After diversifying into international markets your institution now holds a significant proportion of its assets in a foreign currency. (0.5 page limit, 5 marks) d) Your institution holds almost all of its assets in long-term securities. (0.5 page limit, 5 marks)