- 20 Marks
Question
Discuss in detail five (5) factors which bank management must consider in adopting a particular risk transfer/treatment measure in the management of its residual risks
Answer
Five factors:
- Cost-Benefit: Premiums vs. losses, as in Stanbic’s cyber insurance.
- Appetite Alignment: Fits tolerance.
- Counterparty Reliability: Ratings check.
- Compliance: BoG adherence.
- Feasibility: Implementation ease
- Topic: ENTERPRISE-WIDE RISK MANAGEMENT FRAMEWORK
- Series: JULY 2020
- Uploader: Samuel Duah