moral-hazard

Learning Objectives: Compare bilateral and central clearing. Compare initial margin and default fund requirements for clearing members in relation to loss coverage, cost of clearing, and moral hazard. Describe the advantages and disadvantages of central clearing. 24.31.1. In the context of OTC...

Learning Objectives: Describe how to identify causal relationships and how to use Risk and Control Self-Assessment (RCSA), Key Risk Indicators (KRIs), and education to measure and manage operational risks. Describe the allocation of operational risk capital to business units. Explain how to use...

Learning outcomes: Describe moral hazard and adverse selection risks facing insurance companies, provide examples of each, and describe how to overcome these problems. Evaluate the capital requirements for life insurance and property-casualty insurance companies. Compare the guaranty system and...

Learning outcomes: Identify the major risks faced by banks and explain ways in which these risks can arise. Distinguish between economic capital and regulatory capital. Summarize the Basel Committee regulations for regulatory capital and their motivations. Explain how deposit insurance gives...

Learning objectives: Calculate and interpret loss ratio, expense ratio, combined ratio, and operating ratio for a property-casualty insurance company. Describe moral hazard and adverse selection risks facing insurance companies, provide examples of each, and describe how to overcome the...

Learning objectives: Explain how deposit insurance gives rise to a moral hazard problem. Describe investment banking financing arrangements including private placement, public offering, best efforts, firm commitment, and Dutch auction approaches. Describe the potential conflicts of interest...