Reference no: EM132375452

Risk, Regulation and Compliance

Assessed intended learning outcomes

On successful completion of this assessment, you will be able to:

Knowledge and Understanding

1. Critically analyse financial theories, concepts and economic models of regulation and compliance in a range of economic contexts

2. Analyse and critically evaluate the ways in which regulations are adapted in view of specific market culture and consumer behaviour

3. Critically evaluate the role of regulations and compliance in the strategic prevention of systemic risk and contagion

Transferable/Key Skills and other Attributes

1. Identify the strategic and operational impact of financialregulations, compliance and risk management

2. Work on their ownin analysing and presenting solutions to compliance and risk modelling in the solving of organisational problems and issues in the financial sector

3. Develop and enhance research skills and analytical capability for use in an organisational context

Task details and instructions You should:

• Critically analyse the challenges and perils for the global financial markets stemming from the way Credit Rating Agencies operate; how they might affect financial risk assessments and overall financial stability conditions for global markets; how financial risk professionals and financial institutions should react on these ratings; apply your personal critical evaluation on how these developments should reflect on regulatory framework.

• In order to successfully complete this assignment, you need to make extensive use of the relevant literature, both from an academic and practitioner perspective. It is also important to be able to offer an informative and facts based personal view on the issues discussed.

• Be concise, succinct but, at the same time, provide well-developed arguments.

• You should use Harvard Referencing style. In addition, avoidunreliable sources and base your answers on academic and policy papers, as well as articles from well-respected press (like Financial Times and The Economist).

Assignment question: This is an assignment to be written by each student registered on this module. The allowed word count is 3000. The essay will carry 50 percent of the overall course mark. All completed assignments must be submitted through OnlineCampuson or before the due date. University rules on late submission apply.

In order to successfully complete this essay, you need to make extensive use of the relevant literature, both from an academic and practitioner perspective. It is also important to be able to offer an informative and facts based personal view on the issues discussed. Avoid unreliable sources and base your answers on academic and policy papers, as well as articles from well respected press (like Financial Times and The Economist). Be concise, succinct but, at the same time, provide well developed arguments.

1. Produce a report covering the following issues:

(i) Define and describe Credit Rating Agencies and their major operations within the global financial system. Do they satisfy these roles, especially in terms of anticipating future financial turmoils?

(ii) Many commentators state that misleading credit ratings had a direct and immense effect on the development of the Global Financial Crisis. Provide your personal view on this statement, using examples from the recent crisis to support your arguments.

(iii) Given the above criticism of Credit Rating Agencies , the idea of the creation of a European Credit Rating Agent has been put forward by some European policy makers. Describe and discuss the potential positive and negative effects of this proposal.

(iv) What would be your suggestions, as regulatory experts, to improveCredit Rating Agents' performance in risk assessments?

Attachment:- Risk Regulation and Compliance.rar