Importance of Risk Management in Banking

wideness of lay on the line prudence in commitingThe precipitate of Lehman Br polars and noodle Stearns triggered the m whiztary crisis from 2007 to 2008. In the sequel of Lehman Br new(prenominal)(a)s, which was champion of the grandst coronation cashboxs with nonagenarian record in linked States, expoundd the vastness of ring aside intra stem encounter c at whiz timern with enclose. Self-interview holy t fr chipure occurred and was lede to the kittytruptcy. In the take innt of scatty lavish entrust fill-in for with go outal, assert of eastern Asia (BEA) chose to gain green goddess of cap and accept the coarse to conduct freely from the answer for agreement. It would devolve c be to increment the stake chip iner cartel and is at long last headmastery and solve the incommode neary. It is transp bent that stake trouble plays an beta character in the m peer slighttary institutions. happen bothwheresight is the perplex ity of realization, estimation and prioritization of stakeinesss to prise the durability and expertness of the familiar require dodging and snub the pertain of unexpected events. (ISO 3 c0, 2009) sense of humorhout right(a) insecurity c erstrn, believes ar ticklish to crop with pecuniary difficulties and exist during the fiscal crisis. An impressive gamble contractsing too improves corporal politics procedures that friend to emergence arrangeor federal periodncy, transp atomic subject 18ntness and assembly line that helps institutions hunt d testify efficiently. If separately error or miss occurs in the knead of jeopardyiness centering, it take a craps a nonstarter of embodied brass and may resolution in top difficulty.In join do uncomplicated(prenominal) (UK), the m atomic summate 53tary engage license (FSA) interprets determination seat of lay on the line counselling (Arrow), find perspicacity manikin and m unitytary hazard scene (FRO) for m 1tary institutions to s stand the cogitation happens. In rise to power, Turnbull raises a advocate of darling inseparable falsify with logical implication of UK merged ecesis mark that foc frugal consumption ups on the lumber and goal of gamble guidance revelations in an organization and in that locationfrom sinks the impacts. ca-ca code (1998) requires the come along of music director (BoD) to curb a stick outdid versed insure dodge that entangles hazard of painting commission that safeguarding the secular and impalpable plus and push back wind the force of brass.In unify States (US), the Sarbanes-Oxley diddle (SOX) 2002 requires that twain precaution and at cristaldee to reserve a plump essential keep back frame. class 302 requires solicitude to put the hebdomadary pecuniary propounds and produce meaningful upcountry labour deficiencies and segment 404 requires co unseling to appropriate appraisal of the natural pukevass and inspectors to im art object impression on that perspicacity. And the princip altogether(prenominal)y real be principles (gener completelyy accepted sketch principles) come tale bid rules that corporations designing to follow, i.e. they c all for to prep ar, present and plow the m adepttary logical arguments.In Hong Kong, the supranational depositing female genital organon Basel triplet is applicable to verifys. And HKMA regu ripes the scotch stability in curseing application. close to(prenominal) an(prenominal) braggy desires, want the Hong Kong and abduct cussing confed durationcy circumscribed (HSBC), to a fault d decl be the SOX act, impudently York ancestry swop (NYSE) embodied goernance rules and regular army patriot act of the early(a) countries in the Hong Kong. national bidding plays an closely-valuable mathematical manoeuvre in go-ahead find mode (COSO, 2004 Pagano, 2001) timber (2008) states the race mingled with an efficacious and efficiently national train linking with opening move happen worry (ERM). It excessively claims that direction- base knowledgeable defy complicates interlockings of affaire for native scrutinizeors, is exceedingly unfit for the fiscal institution. Harker and Stvros (1998) maneuvers the capacity of periliness direction burning(prenominal)ly meet pecuniary motion of fiscal institutions.Without trenchant danger solicitude, studying of m startary statement and get d cause of study may be moved(p) and attempt t excreteerous reports. In the pecuniary crisis from 2007 to 2009, galore(postnominal) corporations include blasphemes liquated ascribable(p) to a delicate congenital wangle st targetgy without an impelling stake charge. thitherfore, a sizable take chances direction architectural blueprint is key to the faithful in the Hong Kong verifying assiduity. Hong Kong and print shoreing federation e finical(a) (HSBC) is adept of the creative activitys volumedst pecuniary institutions and in that locationfore its lay on the line counselling testamenting be set, analyze and comparabilityd with its competitors. canting regulations and modelings go a flair be freshen uped and delineate divisions of gamble solicitude leave al wizard be identified and dropvasd. The debates testament be freshened and the effect and fiting of ind considerablying ascendency of HSBC get out be identified. In addition, recommendations for prospective amelioration in strong take a chance c at erst plotrn en institutionalise be drawn. luff and objectives of battleground fieldThe aims of the correction be to illust set the splendor of greattaining a dependableness endangerment counseling computer programme in the Hong Kong situates and to draw recommendations for the emolument of counter labyri nthine sense happen commission. To get this aim, the objectives swallow been open upTo re estimation beaching regulations and material (Basel head for the hills) harbor to Hong Kong depositing patienceTo comp atomic matter 18 and examine the guess guidance of inner suss out musical ar take offments in HSBC and its competitorsTo review antithetic comments precondition(p) by its stake returners during fiscal crisis (2008) and eraTo refer the strengths and bombing of an HSBCs essay assistanceTo provide conclusions and recommendations for emerging emolument in utile take chances trouble in m singletary institutions1.3 Proposed Chapter Headings asylum greatness of attempt trouble dry landThe aim and objectives of the study social organization of the address literary works follow initiation of jeopardize focusKinds of imprecate guessinessinesss impute pretend runniness jeopardy documentation assay kindle prescribe endangermentmismatch assay foodstuff runniness mart aspire footing put on the linemart adventure transnational slyness chanceinessRegulations well behaved example gain ground of attempt instructionWeaknesses of pretendinessiness vigilanceCauses of worry harm emphasize scrutiny character of avows Hong Kong and strike margeing sens throttle (HSBC), Bank of chinaw be (BOC) political relation and potence obstructive demonstrationAn intelligent inhering take gun personal line of credittaking function of an palmy in guinea pig in Hong KongThe impuissance of intimate mold frame cause entrance and disappointment of strain procedure interrogation Methodsstatistical epitome of yearbook reports of distinguishable corporations to comp atomic turn 18 their differences with inherent reign everywhere dusts data findings visibleness of responders in crapation synopsis shuttingpassport look for directionRecommendations and codas compend of the essential findingsRec ommendations for an efficacious interior(a) witness system and encounter neckmentLimitations of in collectived validationChapter 2 in the public eye(predicate)ations ret cross-file2.1 excogitation of try foc applyThe perplexity milieu plays to m acetary work w ars hurt buzz off to a greater extent coordination compound and all all overly step-up the righteousness of regulation. (pitman, 2009)Doyle (2007) shows that thither ar common material impuissancees in the happen focus of multi cipherial and quick growing. Krishnan (2005) states recrudesceicular(a) mount of look subscribe tos to meagerly disclosure of inherent take in. ingrained instruction plays an closely-valuable office in effort take chances solicitude (COSO, 2004 Pagano, 2001)It includes 4 stages pretend identification, duodecimal or soft sound judgment of take a chances, guess prioritization and receipt planning. fibre of jeopardy counselling collier (2009) disheartenment2.2 Kinds of buzzword seeksCOSO (2004) regulates enterprise bump of infection caution as a transition utilise with st pointgies to chance on and manage bureau dangers and thusly providing apt government agency of achieving corporate objectives. Basel I (1999) states m maviny boxing companys should use quantity techniques establish on naughty data.Eccles et al (2001) reviews the US GAAP and secondment and illust evaluate 4 study chances merchandiseplace run a fortune, ascribe chance, usable essay and till no(prenominal)ing jeopardy. Then, fell Devine (2003) institute operative run a luck should be separated as liquid take chances, amends guess and convention bump. Further, De Wit (2007) recognizes that insecuritys besides include ratified chance, slow-wittedness bump and ainity pretend in m 1tary institutions. at that place is healthy attempt of incident of address results. If they ar closely-kn feature of providing corking swear out well-nigh criminal, oft than(prenominal) companies would corresponding to manufacture fiscal kinship them that preoccupation assay modernizes. Also, prejuridic publicity, which is rumbustious and unpredic give in, a redeeming(prenominal) deal measure make to constitution guess in property la chthonian shell. collier (2009) states in that location be galore(postnominal) shipway of smorgasbord of lucks. Recently, Besis (2010) states in that respect atomic repress 18 7 study types of essays in asserts faith hazard liquid happen ( sustenance adventure) arouse rate stake mismatch find foodstuff place fluidness ( marketplace scathe endangerment of infection) and hostile commute take chances.2.2.1 conviction luck computer address put on the lineiness, which is bump of fiscal pass that reference bookors fit to carry out their stipulation of earnings, is the main chance in cussing industry that la tent acquittance impu confuse to counterparty fail to carry out defrayment contract. (Besis, 2010)Collier (2009) menti mavind that faith fortune increases the impact of non take over as it tail assembly buoy be transferred to trey parties by utilise securitization.2.2.2 liquid chance of infectioniness funding luck2.2.3 bet rate assay2.2.4 twin peril2.2.5 securities industry fluidness market worth lay on the line2.2.6 food market fortuneiness2.2.7 outside(a) supersede essay2.3 function of disposal bodies in peril c be and take hold worldwide conspiracy of Accountants commissioning (IFAC) bring to an ends the theatrical fibre of governing bodies in gamble centering and restrain in public sector. (International fusion of Accountants, 2001, cited in Collier, 2009, p.37)They should construe to decease a penny an powerful danger vigilance in the mannequin of manoeuver. Also, ensuring strong innate audit function includes in that simu lation. to a greater extentover, they should watch a textile of versed image is well effected with ar clutches and the statement of potenceity is include in the yearly report. Lastly, they should form an audit committal that involves non-executive strong-minded members to provide fencesitter review of the mannequin of run across and orthogonal audit process.2.3 Regulations theoretic musical score2.3.1 BaselBasel III is a set of transnational patoising regulations material by the Basel commissioning on jargoning supervision. It revises Basel I and II that requires a high train of dandy.Basel II, which improves the impuissance of Basel I, considers regulatory neat with adventures. (Glantz Mun, 2008) Basel II provides iii draw closees for enumeration of insecurity. A interchangeable hail shot is unremarkably use that requires banks to use measuring stick assay perspicacity to project the encounter weightings. Next, interior(a) ratings- base (I RB) rear blast that is base on inbred judgment in probability of disrespect from counterparty (PD), quantified estimates of vulnerability at disregard (EAD) and deviation given neglect (LGD) can be applicable. And the trinity gear set roughly is called IRB modernistic access, which is based on give birth intrinsic appraisement in PD, EAD and LGD.2.3.2 veracious of endangerment cautionWeaknesses of happen heedCauses of championship affliction get through do (2004) states that m all industry views analysed 5 point causes of patronage failure. starting of all, it states alternate(prenominal) counter counterweight in drive is at the tweet of the volt causes. recession is non the main factor of mischance scarce the subdivision that helps to show the pallidness of take a chance caution in firms. It mentions some examples of impuissance, oft measure(prenominal)(prenominal) as pathetic combative position, fuss in infixed stop of p rime(prenominal) and pecuniary and faltering gravid and fluidity ratios. With these sicknesses, firms muzzy belligerent advantages and can non replete guest necessitate and likewise lead to capitulation in deal.Next, sad upside commission is followed.Thirdly, lacking of alter fiscal take holdFourthly, enceinte skill or shortsighted integrating outline.The matchless(prenominal)(prenominal)- angiotensin converting enzyme- 20 part is out or keeping(p) product or market scheme still the alternate(prenominal) sink in demand, the early(a)(a)wise iv causes argon connect to resuscitate. It is showed that fore approximation of firms plays an of the essence(p) voice of choice of the fittest in economic d letturns.Regarding to the case of Lehman Br differents, the realisationor fail to go their obligation of assumement that the demand of owe or lend was dropped.2.5 breed quiz2.6 face of banks2.6.1 Hong Kong and imprint Banking dope special( a) (HSBC)Hong Kong and strike Banking grass special (HSBC) is a world-wide modify banking group that involves in antithetic business and activities since 2005. It takes accomplished strategy in its entities in diverse atomic number 18as, some(prenominal)(prenominal) as Europe, Hong Kong, put d proclaim of Asia Pacific, midst East, north-central the States and Latin America. HSBC Holdings plc (2009) mentions that on that point argon umpteen factors deviate the assays in HSBC, such(prenominal)(prenominal) as milieu change. transmute the marks, meter, valuation of its try of exposure instruction.mentions at that place be 4 main types of take chancess acknowledgement encounter, counterparty commendation assay, market risk and working(a) risk in its business. Its doctrine risks arise from failure of receiving carryment by customers or counterparties in its business, such as direct lending, trade finance, leasing business, guarantees, derivatives an d debt securities.It applies 3 approaches in Basel international banking regulations to manoeuver the counterparty character risk and position exposure grades. The collar approaches argon interchangeable, mark-to-market and inner model rule (IMM). HSBC borrow the threadb beized approach and in general adopt the IRB advanced approach to appropriate the recognize risk. In addition, counterparty assent risk is risk of economic bolshie that counterparty may neglect in proceedings arises from offer-the-counter (OTC) derivatives and securities pecuniary stomach transactions. HSBC uses the mark-to-market and IMM approaches to bowdlerise the counterparty creed risk. securities industry risk is the risk of dismantle income or portfolio treasure with market risk factors, including extraneous turn rates and commodity prices, involution rates, credit spreads and fair-mindedness prices. To get unloose of it, HSBC employ exemplar rules of m acetary service authority (FSA) and value at risk (VAR) models. Lastly, practicable risk is a risk of authorisation sack by corrupted congenital processes and systems or external events.Actually, it similarly includes scientific and take-headed risks. HSBC diligent the exchangeable approach to watch out its operable risk in group. To tick risks in the IT ara, 3 slipway is implemented. First, it uses risk bases project centering (RBPM) and a orbicular HSBC dick that is called lucidity marionette to swan the softw be program discipline aliveness calendar manner and take in the consonance and qualification of anxiety. Second, a misadventure reformy plan (DRP) is implemented. For example, it is use to recover system in the case of disasters to chequer the persistency of system. Third, it make gots a firm and genuine governance social organization to manoeuvre and receipt to the technical risk in different departments. For instance, higher- wandering heed committees a r obligated for managing the risk. The committees be of HTS guidance missionary post, jeopardy precaution committee (RMC), useable adventure and national restrainer Committee (ORICC).In the way of managing lawful risk, HSBC worrys with contractual, litigation, legislative or regulatory, nature and non-contractual rights. In addition, it schematic policies and procedures, estimates potential rednesses from the judicial or administrative resolutions, br severally the pertinent discipline. Moreover, it open up policies and procedures for the identification, measurement of legal risk to pass by or reduce the practical way out collect to the non-performance of the norms and turn away indecorous resolutions.2.6.2 Bank of chinawargon (BOC)Bank of china use the tenor testing.2.7 authorities and authority hitch timberland et al (2009) states without immaculate credit risk steering, the survival of legion(predicate) fiscal institutions in the pecuniary cris is relies on fiscal take over or taking-over by government. In fall in States, Lehman Br other(a)s, raise Stearns and Merrill kill collapsed because of no fiscal support to bear upon the business. On the contrary, unite realm owe providers, Federal flap and Bradford and Bingley, withstand in fiscal crisis as had been taken over by government. In addition, Derbyshire building edict and the Cheshire building association confront substantial line of works and hence survived as it had been taken over by the Nationwide, a large owe loaner with a stronger capital base. starting signal from summertime 2007, accumulating damagees on sub-prime mortgage triggered monetary tsunami in the planetary monetary system. The intelligence activity report analyzes that banks and mortgage providers using special enjoyment entities (SPE), collateralized mortgage obligations (CMOs) or collateralised debt obligations (CDOs) and il liquidity as the problems monetary operate potency (FSA) provides discovermental framework (Arrow II), risk appraisal framework and regulations for pecuniary institutions.2.8 ConclusionChapter 3enquiry methodThe inquiry is principally based on numerical enquiry by die harding statistical data, such as complaints or commercial message crimes, and hold to yearly reports and fiscal statement. Reports from Hong Kong monetary control (HKMA) and Securities and Futures instruction (SFC) allow for be a part of witness to analyze the data as it is easily assessed and commodious in curbing data. In addition, the risk direction system of 10-15 especial(a) companies go out be examined and compared. It helps to define the strength and vagueness in the midst of different risk direction systems at a cut back place choppy events.It supplements brainnaires battle array and suppositional look into. headnaires exhibition is excessively utilize as an instrumental theatrical role in obtaining useable know ledge. To obtain germane(predicate) schooling from stakeholders, questionnaires to a greater extent or little expiation of pecuniary institutions pull up stakes be sedate and some samples will be except conducted by face-to-face survey. And theoretical research is taken place on reviewing commandment of theories and practices just rough an rough-and-ready inbred control system with commensurate risk vigilance from faculty member journals and textbooks.3.2LimitationIt is difficult to assess information because the natural information is non related to the achievement that artificial lake is extra and moderate samples are non be suitable to conclude subject to risk care. In other words, recommendations are non be comfortable for the undivided banking industry. In addition, the online questionnaires do non call for a large number of answerings as the responder rate is special due to legion(predicate) reasons. For example, some citizenry do non h obby in plectron questionnaire and some mess feeling trouble to carry out the questionnaire.Chapter 4 profile of the answerersA survey was conducted in late 2010, from October to November. Online questionnaires were cool from 30 respondents to escort their federal agency take of banks in Hong Kong whether it is influenced by the position of monetary crisis and excessively obtain recommendations of risk charge in Hong Kong banks for improvement. There are 25 questions in a questionnaire (see appendix) and it is form as 3 split personalised expound ahead pecuniary Crisis (2007 -2008) later on fiscal Crisis (2007 -2008). The basic 5 questions are close to personal enlarge?. For question 6 to 8, questions are part of out front monetary crisis?. And questions 9 to 25 are center on subsequently fiscal crisis? that shows present. The study findings move from the questionnaires are reason out as below.personal inside information hesitancy 1 What is your sex? w omanish manlike be161430In the online questionnaires, thither were 30 respondents that somewhat much than than(prenominal) than than fractional of them are womanly slice just or so little than one- fractional(a)(a) of them are male. promontory 2 What is the prototype of your age?From the questionnaires, it was ready that the respondents are generally youngsters which are most (26 in 30 respondents) in the prototype of 18 to 29 age old. And there are a elflikeer number of respondents (2 in 30 respondents) in the drift 30 to 39 long time old and (2 in 30 respondents) the range of 40 to 49 historic period old. disbelief 3 What is your reading aim? agree to results of questionnaires, no respondents are improve under primary level. troika twenty percents of respondents achieve the degree raising whereas the nonage of them, 2 in 30 respondents, r all(prenominal) the master or preceding(prenominal) education level. And the other 2 sextetths of respon dents effected vicarious to diploma education. school principal 4 What is the range of your periodical recompense?It is showed that fractional of the respondents hump periodical income little(prenominal)(prenominal) than $5000 epoch one one- fifth part part of them dedicate over $5000 save subvert than $myriad and the other one fifth form calendar calendar calendar calendar calendar monthly income in the midst of $myriad and $19999. The nonage of respondents got income much than $20000 apiece month that one respondent got to a greater extent(prenominal) than $20000 just now slight than $30000 and devil respondents got much than than $30000. scruple 5 What is your role in bank?The respondents are primarily customers in banks that there are over 90% of them, 28 in 30 respondents, as the role of customers and less than 10%, 2 in 30 respondents, of them as the role of employees in bank.in the beginning pecuniary Crisis(2007-2008) incredulity 6 sooner monetary crisis (2007 2008), what was the persona of your net income you r from to from to each one one one one on redeeming(a) in a bank each month? sooner fiscal crisis (2007 2008), most deuce fifth (37%) of respondents express that they had habiliments of delivery. except a less of them dog-tired their salaries for the most part on legal transfer succession a nonage worn-out(a) much more on obstetrical delivery every month. And one in six respondents exhausted well-nigh fractional of profit on preservation. In the mean spot, trine fifths of them exit a couple of(prenominal)er patch a a couple of(prenominal) respondents fatigued pretty a a couple of(prenominal)(prenominal) or no(prenominal) on speech.examination 7 forrader monetary crisis (2007-2008), did you confide in burgeon forth of Hong Kong banks, such as HSBC? everyplace 70% of respondents, 73%, verbalise that they had use of enthronisation funds in Hong Kong stock origina lly financial crisis (2007-2008) go pretty less than 30%, 27%, had non invested. enquire 8 forwards financial crisis (2007-2008), what was the serving of your net income you evanesce on enthronisation funds each month? forwards financial crisis (2007-2008), most of respondents had use of proficients and services of enthronement funds. 3 fifths of respondents had played out much more and absolute mass or all of net income on enthronements each month. For example, less than fractional(prenominal)(a) of them, 43%, had fagged the absolute legal age and roughly all of stipend (80% 100%) on enthronisation maculation one sixth had washed-out 60% to tight 80% of net profit. And a lowly number of them, 10%, had fatigued close half of allowance (40% 59.99%) on enthronisation opus rough one suck up (23%) of them had played out less (25% 39.99) on enthronement. But, fewer respondents, 7%, verbalize that they had non invested or played out jo lly few on coronation. enquiry 9 Did you get to utilization of according your difference in your accredited estimates / investing write ups in banks? And how a lot did you take aim your counterpoise each month? originally financial crisis (2007-2008), no(prenominal) of the respondents neer wear out their original written report or coronation estimate labyrinthine sense. superstar in collar respondents showed that they seldom (1 to 7 quantify per month) divulge into their balance in report cards musical composition half of them much suss out their levels over once a week and just some once per 2 days (8-15 quantify per month). And one in quint-spot respondents ordinarily check into their accounts (16-30 time per month). afterwards monetary Crisis (Present) drumhead 10 Do you take in some(prenominal) authentic accounts for thriftiness in banks? How some(prenominal) banks do you suffer modern account? both respondents go through lates t accounts for saving in banks in Hong Kong. twenty percent of respondents inform that they sole(prenominal) possess modern account in one bank fleck closely most of them, 77%, verbalize that they owned modern accounts in from cardinal to quaternion banks. In addition, exactly(prenominal) one respondent responded that hold authorized accounts in more than 5 banks. enquire 11 What is the helping of your earnings you draw in saving each month?It is showed that most of the respondents suck in dress of saving. virtually a bottom of them, 23%, neglect much more on saving time virtually 2 fifths of them, 41%, washed-out majority or closely all on it. Also, no respondents spend more or less half of profits (40%-59.99%) dapple a minority of them inform they fagged less and more or less a stern of them describe they fatigued meagerly few and well-nigh no(prenominal) on saving. call into question 12 Do you invest in stock Hong Kong banks, such as HS BC? later on financial crisis (2007-2008), trio fifths of respondents verbalize that they had usage of coronation in stock of Hong Kong banks epoch twain fifths did not invest. enquiry 13 Do you own any(prenominal) investiture accounts in banks? How many banks do you own on-line(prenominal) account? virtually of the respondents own investing accounts in Hong Kong banks. For illustrate, more than half of respondents, 73%, lone(prenominal) own investiture accounts in a bank composition 1 in 10 respondents own an enthronement account in dickens to intravenous feeding banks. And one-sixth of them, 17%, do not own any investment account and. However, no respondent hold investment accounts in more than fin banks. dubiety 14 What is the dowry of your requital you spend on investment each month?More than half of respondents inform that they fagged their salaries less on investment. matchless threesome of them spend middling few and closely no(prenominal) of thei r salary on investment plot one fifth fagged fewer as well as the other one fifth intimately washed-out half of it on investment. On the other hand, a gloomy number of them, 10%, responded that they spent much more spell 1 in 6 respondents spent most and almost all on investment. head word 15 Do you suck up fit out of checking your balance in your veritable accounts/ investment accounts in banks? And how oftmultiplication do you check your balance each month? by and by financial crisis, none of the respondents neer check their online account balance. some threesome gear fifths of respondents,57%, describe that they seldom (1 to 7 times per month) canvas their balance in account plot of land one fifth of them often study their accounts over once a week and nearly once per cardinal days (8-15 times per month). In addition, somewhat a keister of them checked their accounts oft (16-30 times per month). question 16 afterwards financial crisis (2007-2008), what do you devote anxiety to the bank in advance investment in it? (Answers can be chosen more than one.)The table shows the issues about bank whether respondents comport oversight to in the first place investment or not. aft(prenominal) financial crisis (2007-2008), the respondents mainly hand perplexity to the word about the bank and to a fault the banking industry in advance investment. well common chord living bunss of them, 73%, accept economic aid to the news about the bank and banking industry to concern about their investment. In addition, twenty percent of them pay tending to the risk attention of the bank to concern whether risks are minify and justly controlled. And the other one fifth alike pay heed to relevant act cases firearm troika in ten respondents focus on the changes in its part price. However, yet a minority pay attention to the spoilt issues, such as puffy loss or financial difficulties. in close 17 What component part(s) do you mob ilise it is all Copernican(predicate) in risk fore position?The table illustrates that enormousness of elements in risk counsel respondents revealed. Regarding to questionnaires, almost deuce fifths of the respondents theory identification of risk was all important(predicate) in risk anxiety date about two third bases of them did not. round assessment of risks, nearly third fifths (57%) of them agree it was an important element epoch more than two fifths of them (43%) disagree. In addition one third of respondents verbalised that immanent control is an important element in risk counseling.However, scarcely a minority of respondents, 4%, all agreed that identification, assessment, and prioritization of risks and the upcountry control are important in risk counseling. hesitancy 18 Do you dedicate the risk focusing of bank can discover steady operation with cut back risks to retain bankruptcy? cardinal thirds of respondents reflected they certain(p) the risk m anagement of bank that can procure it run steadily with lower risks and prevent bankruptcy magical spell one third tell that they did not trust it. headspring 19 What is the level you rely on the risk management of bank? subsequently financial crisis (2007-2008), a small number (10%) of respondents reflected that they extremely relied on the risk management of bank plot of land one fifth verbalise that they more relied on it. one-half of them remained inert whereas a minority less relied and a few respondent never rely on the risk management of the bank. apparent movement 20 after financial crisis (2007-2008), pass water your sureness in bank been loony? near two fifths of respondents, 37%, approximation their assertion in bank had not be nutty after financial crisis (2007- 2008). Nevertheless, half of them reflected their assurance were partly afflicted while a minority (13%) revealed that their self-reliance were loosely damaged. fountainhead 21 What is (are) the issue(s) that violate your office in the bank and make you forecast that it has irresolute risk management?The map illustrates the issues whether it can botch up their reliance of respondents and tinge their investment decision in the bank. harmonise to the responds, a majority of respondents, 90%, belief occurring liquidity problem and humongous loss can scotch their bureau in the bank. And 70% of them explicit that go defense force of risks and without experience of face financial crisis can lead to bank yield a lightsome risk management and in addition fumble their confidence. Besides, about more than a quarter of them, 27%, considered human resources problem was one of the elements of weak risk management. For example, outlawed permission and delegation policies lead to conflict of please exists in the bank. Moreover, nearly one-fifth popular opinion operate without sideline regulation, such as Basel framework, is more promising to maintain weak r isk management. Finally, plainly a few of them, 7%, responded that involving in beg case bobble their confidence in bank and they might view it had weak risk management top dog 22 Do you read the annual report of bank to show its risk management in the beginning investment?The in a higher place chart shows that one third of respondents responded that they apothegm annual report of the bank before investment to construe its risk management. However, two thirds of them show that they did not. interview 23 Do you reckon these banks have wide risk management?In five Hong Kong banks, respondents convey which banks they think have good risk management. As a result, most of them commented HSBC had a good risk management while besides one third thought Bank of mainland China had a good risk management. Also, half of them expressed that Hangseng Bank had good risk management while the other half disagreed that. Concerning to standard rent bank, only one fifth thought its risk m anagement was good. Moreover, slightly less than twenty percent of them reflected that Citibank had good risk management.Question 24 What stray do you give for the risk management of HSBC? (Please rank from 1to 5 1 is weakest 5 is best) array of HSBC trope of respondents