What is difference between portfolio risk and obligor risk

Assignment Help Risk Management
Reference no: EM13925135

1. What is the difference between portfolio risk and obligor risk?

2. What is the advantage of bifurcation of the firm credit risk into business risk and financial risk?

3. Explain business risks.

4. What do you mean by financial risk? Explain the role of financial statements in the study of financial risk.

Reference no: EM13925135

Questions Cloud

What do you mean by credit risk culture : What do you mean by credit risk culture? Discuss its importance. Explain the importance of credit risk appetite. What are the factors to be considered while deciding credit risk appetite?
Provide your reasoning using ethical codes of conduct : Beside each situation below, place a check by the term(s) that best reflects your opinion of the behavior of the individual. Provide your reasoning for each of your answers using both the ethical codes of conduct and the information on computer cr..
How credit risk management done in financial intermediaries : Briefly elucidate how credit risk management is done in financial intermediaries. Explain whether a financial intermediary can shy away from taking credit risk, i.e. be credit risk averse? Please elaborate.
Calculate the number of days : Bay Traders, an international gourmet food distributor, is concerned about shipping delays over the last six months. Review the orders over the past six months and identify any order that was not shipped within 30 days.
What is difference between portfolio risk and obligor risk : What is the difference between portfolio risk and obligor risk? What is the advantage of bifurcation of the firm credit risk into business risk and financial risk?
Industry-mandated : a single basis (or activity base) should be used for all costs.GAAP requires the use of industry-mandated standardized activity bases.
What is the expected return on the loan : The customer is expected to draw down 80 percent of the commitment at the beginning of the year. a. What is the expected return on the loan without taking future values into consideration?
Can operational risk influence financial risk and vice versa : How understanding of the various levels of operating risk and financial risk influence credit risk analysis. Can operational risks influence financial risks and vice versa?
Gallo company uses a flexible budget : The Gallo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct cost categories

Reviews

Write a Review

Risk Management Questions & Answers

  Discuss the working capital requirements

Discuss the working capital requirements. Also explore the liquidity situation. What would be the working capital situation if the turnover doubles without change in the current terms of trade?

  What is difference between systematic and unsystematic risks

What is the difference between systematic and unsystematic risks? Is it true that regulators are more interested in systematic risks while individual banks give equal importance to both? Please share your views.

  What is the importance of understanding the business model

What is the importance of understanding the business model of a customer? Explain the essential steps and factors involved in internal risk identification.

  A leader in your firm has been studying the foreign

a leader in your firm has been studying the foreign exchange market for a number of years and believes that she can

  Explain possible risk mitigants you would seek from customer

Explain the possible risk mitigants you would seek from the customer and the kind of credit monitoring system you would implement to closely track developments.

  Create a matrix that summarizes the additional risk factors

Create a separate new matrix that summarizes the additional risk factors for this firm launching a management consultancy or legal services line. What additional risk factors are you adding to your matrix

  What you mean by country risk in context of credit portfolio

Do you agree with the statement that sector or name concentration pays off in equities but not in credit? Explain with reasons. What do you mean by country risk in the context of a credit portfolio?

  Do analysts use financial ratios rather than absolute number

Why do analysts use financial ratios rather than the absolute numbers? Besides comparing a company's performance to its total industry, discuss what other comparisons should be considered within the industry.

  Identify the highest priority internal audit engagements

Identify the highest priority internal audit engagements. Justify your reasoning for each engagement identified - Explain the difference between evaluating inherent risks and residual risks, and how Team Risk facilitates the evaluation process.

  How to deal with dementia condition

How to deal with dementia condition.

  What should a organization consider when evaluate loan money

What should a business organization consider when evaluating whether to borrow money (use credit)? What should a business organization consider when evaluating whether to loan money (extend credit)?

  Fundamental active management strategies

Looking at the exhibit on page 571 that graphically portrays the characteristics of value and growth stocks, briefly explain why you would use the "top down" and "bottom up" fundamental active management strategies to focus on value stocks?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd