Scenario Analysis is the same as stress testing which capture the Group’s exposure to unlikely but plausible events. Many different scenarios are run, in order to account for significant movements in credit spreads, interest rates, commodity prices, and exchange rates.
Citi performs stress testing on a regular basis to estimate the impact of extreme market movements. It is performed on individual positions and trading portfolios, as well as in aggregate inclusive of multiple trading portfolios. Citi’s independent market risk management organization, after consultations with the businesses, develops both systemic and specific stress scenarios, reviews the output of periodic stress testing exercises, and uses the information to assess the ongoing appropriateness of exposure levels and limits.
FACTOR SENSITIVITY
Factor sensitivities are defined as the change in market factors affecting a current position, like the Treasury, by a single basis point. Citi practices calculating, monitoring and limiting all factor sensitivities across their entire material risk portfolio. Essentially, the factor sensitivities take the single basis point exposure and ensure that these levels are monitored across the firm. This appears to be a manual process of which requires a large amount of time to keep up with. I also question the usefulness of such a calculation.
In addition, the firm claims that these measurements are used to assess the amount of interest rate swaps that must be
To get a better handle on the options and the risks associated with them, the company estimates the severity of each event and calculates the level of risk (based on severity of the event and the probability of occurrence). The events are then ranked with those exhibiting the highest risks placed at the top of the list. Next, the source of high-risk events is investigated.
A portfolio of responses to different genres of crisis like events which considers the probability of such a crisis to occur
As it applies to an IT environment, a vulnerability assessment is used to identify existing vulnerabilities giving the environment owner an awareness of what needs to be fixed (Who needs a Vulnerability Assessment, 2017). The assessment needs to be viewed for what it is, a onetime occurrence that in no way highlights all vulnerabilities. Multiple assessments of vulnerability must be conducted over time to ensure that as many possible avenues of weakness are explored, identified, and marked for improvement. As new systems are added, programs changed, or other changes to the system are made vulnerabilities might be created.
It is a beautiful, sunny day in Miami, Florida. The birds are chirping, and the fresh ocean breeze is rustling the leaves. Steve Weston is trying to make the most out of this hot, summer day. He spots a moving truck outside his window. A young girl with dark hair and bright yellow glasses and what appears to be her father get out of the truck and go into the house next door. Steve was not expecting new neighbors so soon. All of the sudden, Steve hears loud banging noises, one after the other after the other. To others that is the sound of a nail gun going off, but to him that is the sound of the bullets firing from an M240 machine gun. He is transported to the battlefield where he lost his best friend and wife, Caroline Jones. After Steve came
Cernauskas, D., & Tarantino, A. (2011). Essentials of Risk Management in Finance. Hoboken: John Wiley & Sons, Inc.
Existing controlled examinations of intervention efficacy specific to only sexual assault and rape are presently minimal in comparison to intervention examinations of combination or other types of trauma (Regehr, Alaggia, Dennis, Pitts, & Saini, 2013). Psychotherapeutic interventions that fail to differentiate sexual assault and rape victims from other types of trauma victims may decrease the treatment effectiveness or inadvertently harm participants in this subgroup. Trauma associated from rape or sexual assault differs from other forms of trauma and treatment efficacy should be examined in this manner. Trauma from rape or sexual assault entail symptoms of PTSD, depression, suicidal ideations and sexual dysfunction. Individuals may also indicate feelings of vulnerability, loss of control, fear, shame, self-blame, societal blame and stigma (Russell & Davis, 2007; Regehr et al., 2013; Ullman &Peter-Hagene, 2014). This research proposal intends to explore the long term effectiveness of Prolonged Exposure Therapy (PE) at reducing distress and trauma explicitly for adult victims of sexual assault and rape.
What-if scenario means changing one variable and seeing what happens to other value. Using what-if, quantities of different components can be changed and the results could be analysed. What-if is similar to goal seeking in spreadsheet. For example an ice cream company would ask their staff “What if we increase ice cream sales in the summer rather
In psychotherapy there are many different ways that a therapist can decide how to treat a client. In my paper I will discuss how Exposure Therapy and Behavioral Therapy work together with a client. I will focus on the nature of the problem, the process of change, theory in practice, multicultural considerations, and the types of clients and clinical problems.
“Cognitive-behavioral therapy (CBT), specifically exposure therapy, has garnered a great deal of empirical support in the literature for the treatment of anxiety disorders” (Gerardi et al., 2010). Exposure therapy is an established PTSD treatment (Chambless & Ollendick, 2001) and so is a benchmark for comparing other therapies (Taylor et al, 2003). “Exposure therapy typically involves the patient repeatedly confronting the feared stimulus in a graded manner, either in imagination or in vivo. Emotional processing is an essential component of exposure therapy” (Gerardi et al., 2010). “Exposure therapy in the virtual environment allows the participant to experience a sense of presence in an immersive, computer-generated, three-dimensional,
We all know from our course that leverage and liquidity risks of financial institutions are vulnerable to the crisis. The financial crisis that emerged in 2007 had many and varied causes, but one of its most
It did not matter what type of security it was; the crisis affected the entire market. However, different classes of assets are affected in different ways. To figure out the systemic risk of a particular industry, security, or portfolio, and to see how that systemic risk compares to the overall market’s systemic risk, investors and others use beta.
* To reassess the identification and measurement of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the business combination if the acquirer’s interest in the net fair value of the items recognised exceeds the cost of the combination. Any excess remaining after that reassessment must be recognised by the acquirer immediately in profit or loss.
Stress testing is a pre-emptive risk management process designed to help determine the impact of charge-offs against your current capital levels and the amount of capital you’ll need to fill the holes caused by lost earnings. This scenario planning enables you to project peak potential losses by asset type within a specified geography over a defined time horizon. Typically, analytics are applied against a range of potential situations:
Risk related to events even before the War on Terror began, the Sept. 11, attacks dealt a harsh blow to America financial standing (DePietro, 2017).sintressing the future role in which finance leadership is evolving. Equally alarming this crisis that influences an organization's decision-making, based on significant external and uncontrollable factors. Some of these aspects that remained obtainable in this discussed involve the economic factors, legal, political, and social conditions technological changes. The change of Interest rates in