THE INSTITUTE OF FINANCE MANAGEMENT

FACULTY OF INSURANCE AND SOCIAL PROTECTION

DEPARTMENT OF INSURANCE

ORDINARY DIPLOMA IN INSURANCE & RISK MANAGEMENT

(NTA LEVEL 5)

PROJECT 2020/2021

PROJECT QUESTION:

Basel II is a set of international banking regulations put forth by the Basel Committee on Bank
Supervision, which leveled the international regulation field with uniform rules and guidelines.
Basel II expanded rules for minimum capital requirements established under Basel I (for
financing losses resulting from operational risk events), the first international regulatory accord,
and provided the framework for regulatory review, as well as set disclosure requirements for
assessment of capital adequacy of banks.

Required:
Pay a visit to at least one Insurance Company and a Bank of your own choice, and then do the
following:

i. Introduce your project report by establishing the main objectives of your project and
providing the general overview of the selected financial institutions.
ii. Introduce the concept of operational risk and identify at least five causes of operational
risk in the selected Institutions.
iii. Explain how the following loss exposures relate to the operational risk in the selected
Institutions: Market risk, Credit risk, Liquidity risk and Reputational risk.
iv. Provide conclusion and recommendations on how the Financial Institutions can manage
the risk related to their operations.
 SUGGESTED PROJECT STRUCTURE

1.0 CHAPTER ONE: INTRODUCTION (at least 2 pages)

Establish the main objective of your project and provide the general overview of the visited
Insurance Company and Bank.

2.0 CHAPTER TWO (3 pages)

Introduce the concept of operational risk and identify at least five causes of operational risk
in the selected Institutions.

3.0 CHAPTER THREE(4 pages)

Describe how the following loss exposures relate to operational risk in the selected
Institutions:
a. Market risk,
b. Credit risk,
c. Liquidity risk, and
d. Reputational risk.

4.0 CHAPTER FOUR: CONCLUSION AND RECOMMENDATIONS (1-2 pages)

Conclude your work and give your own opinion on how the Financial Institutions can
manage the risk related to their operations.

5.0 REFERENCE:
Provide references from at least 5 text books.

FORMATTING
General Text: 1.5 line spacing using one side of the page only.
Font: Times New Roman, font size 12.
Page number: centered at the bottom of the page.
Justified: Both left and right.

NOTE:
 Please follow the structure of the report as indicated above.
 You are advised to plan your work carefully and back-up your work using different
storage devices in order to avoid problems as a result of computer crash, virus attack or
any other reason. Computing and printing problems will NOT be accepted as reasons for
non-submission.
 Finally, PLAGIARISM is not accepted.