Case Study: Model Risk and Model Validation
After completing this reading, you should be able to: Define a model and describe different ways financial institutions can become exposed to model risk. Describe the role of the model risk management function and explain best practices in the model…
Case Study: Investor Protection and Compliance Risks in Investment Activities
After completing this reading, you should be able to: Summarize important regulations designed to protect investors in financial instruments, including MiFiD, MiFiD II, and Dodd-Frank. Describe and provide lessons learned from the case studies involving violations of investor protection or…
Case Study: Third-party Risk Management
After completing this reading, you should be able to: Explain how risks related to the use of third parties can arise and describe characteristics of an effective third-party risk management framework. Describe the lessons learned from the case study involving…
Risk Governance
After completing this reading, you should be able to: Explain Basel regulatory expectations for an operational risk management framework’s governance. Describe and compare the roles of different committees and the board of directors in operational risk governance. Describe the “three…
Case Study: Financial Crime and Fraud
After completing this reading, you should be able to: Describe elements of a control framework to manage financial fraud and money laundering risk. Summarize the regulatory findings and describe the lessons learned from the USAA case study. This chapter discusses…
Case Study: Cyberthreats and Information Security Risk
After completing this reading, you should be able to: Provide examples of cyber threats and information security risks and describe frameworks and best practices for managing cyber risks. Describe lessons learned from the Equifax case study. Examples of Cyber Threats…
Integrated Risk Management
After completing this reading, you should be able to: Describe the role of risk governance, risk appetite, and risk culture in the context of an enterprise risk management (ERM) framework. Summarize the role of Basel regulatory capital and the process…
Introduction to Operational Risk and Resilience
After completing this reading, you should be able to: Describe an operational risk management framework and assess the types of risks that can fall within the scope of such a framework. Describe the seven Basel II event risk categories…
The Blockchain Revolution: Decoding Digital Currencies
After completing this reading, you should be able to: Explain how a blockchain-based cryptocurrency system works and compare cryptocurrencies to conventional money and payment systems. Describe elements of a decentralized finance structure, including smart contracts, tokenized assets, decentralized autonomous organizations,…
The Future Monetary System
After completing this reading, you should be able to: Identify and describe the benefits and limitations of crypto and decentralized finance (DeFi) innovations. Describe the role of stablecoins in DeFi ecosystems and differentiate among the types of stablecoins. Discuss possible…
