Sample Risk Management Project Paper Topic: You are a risk analyst in a large bank and must write

a 5-10 page report on a real bank whose numbers you were given. The report consists of: An introductory paragraph assessing the banks overall financial and risk profile, along with your recommendations for improvement (10%). Overview & recommendation: any particular problem areas? How do you recommend fixing them? What is the bank doing right? (Use bullet points) Beneath that include a table of headline numbers and ratios (10%), Such as: Loans/deposits Equity/assets LLRs/impaired loans NPLs/total loans (cash + due from banks)/assets Market funds/total funds Net int income/total income Expense/total income ROE followed by greater amplification on the assessment of: asset quality and adequacy of loan loss reserves (10%), Good? Bad? Why? Compare to other banks. Based on loan portfolio, what is expected loss? cost position and dividend recommendation (10%), Good? Bad? Why? pricing of loans and deposits (10%), Is this being managed adequately? quality of earnings (10%), Is it decent? How does it compare to other banks? capital adequacy (10%), What are minimum capital requirements? liquidity and funding (10%),

Show your funding gap analysis. market risk and sensitivity thereto (10%), and lastly, What does the VAR tell you? operational risk (10%). Basic indicator approach? Each section, consisting of a paragraph, should also include recommendations where appropriate. Report: Your report should have 1000 to 2000 words, excluding tables and graphs. You should give a reasoned and persuasive rationale for your recommendations, using financial measures to back up your analysis. As outlined above, there should be a table of summary financial ratios. There could also be a table comparing your banks performance indicators with comparable banks, to help justify your recommendations. Modelling: You also need to supply a file that documents your calculation work, for the major ratios. This should be a representative spreadsheet file.