An analysis of the extent to the most important risk that international banks face in cross-border operations is political risk
To what extent is there now a closer correlation between the expectations of internal and external auditors?
August 6, 2021Financial risk management in maritime finance
August 6, 2021An analysis of the extent to the most important risk that international banks face in cross-border operations is political risk
Example financial risk management dissertation topic 2:
An analysis of the extent to the most important risk that international banks face in cross-border operations is political risk
As Garrett, Mahadeva and Sviridzenka note, ‘systemic risk among the network of international banking groups arises when financial stress threatens to criss-cross many national boundaries and expose imperfect international co-ordination’ (2011: 1). This paper considers this phenomenon and evaluates methods by which international banks may determine and mitigate risk in a global climate that is no less stressful today than it was ten, twenty or one hundred years ago. Political understanding is a key component of managing risk in this environment and must be evaluated carefully in order to contain risk. This study conducts interviews with a representative of the Bank of England and well as financial figureheads to develop a wider understanding of the problem.
Suggested initial topic reading:
- Nolle, D.E. and Kelly, H.C. (2003) ‘Cross-border outsourcing and risk management for banks’, Capco Institute Journal of Financial Transformation, Vol. 8, pp. 63-72.
- Garrett, R., Mahadeva, L. and Sviridzenka, K. (2011) ‘Mapping systemic risk in the international banking network’, Bank of England Working Paper No. 413, London: Bank of England.
