Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9781259870576
Author: Ross
Publisher: MCG
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Chapter 23.5, Problem 23.5ACQ
Summary Introduction

To discuss: Meaning of swap contract and its types.

Introduction:

Swap contract is an emerging derivative instrument, which is first introduced in the year 1981. The swap contract is an agreement to swap or exchange cash flows at specified intervals. This instrument is enormously growing across the world and mostly used by the multinational companies to exchange cash flows.

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Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions:  https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by      Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case                 Step 2   List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists                                                               Step 3   Risk identified Impact (if occurred)H/M/L…
Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions:  https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by      Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case
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