Q3.docx - (slide 1 Risk taxonomy is the premise of risk identification so it is necessary to define the method of risk taxonomy There are two methods

Q3.docx - (slide 1 Risk taxonomy is the premise of risk...

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(slide 1) Risk taxonomy is the premise of risk identification, so it is necessary to define the method of risk taxonomy. There are two methods could be used. The first one is Root Cause Method, which means that the risks are classified by root cause. This method could help companies to identify and treat the risk. Another method is impact method, according to the name of this method, we can easily know that the risks are classified impact on the business statements. And this method may be required for regulatory reporting and capital measurement. It is an important step to take the method of defining risk classifications into account in the risk management process (slide 2) According to the annual report of CITIC Securities in 2017. credit risk and liquidity risk are the major risks currently being faced by this group. Moreover, there are also some other risks, which are strategic risk, market risk, operational risk compliance risk and internal operations and management risks. For the ANZ, the key

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