What type of analysis has the risk team performed

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Reference no: EM13936487

1. If you were a board member, what issues might you have with this way of reporting VaR?

2. If the underlying distributions were determined to be non-normally distributed, what could you do to improve the calculation of total bank VaR?

3. The risk management team determines that a combination of an ex- tended period of falling house prices for five years resulting in a cumula- tive decline of 25 percent and a -5 percent GDP scenario results in the bank losses reaching $12 billion and current capital levels at the bank are at $11 billion. What type of analysis has the risk team performed and how do you arrive at this answer?

Reference no: EM13936487

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