1.1 With reference to the banking sector, justify the application of risk modelling techniques and suggest the reasons why banks are experiencing more model failures with further issues expected with time. Provide relevant examples for your discussion by using in text citation and harvard style of referencing(15 marks)

1.2 As suggested in the case study, banks must urgently address the model failures and make needed adjustments to avoid having to rely only on the analysis and judgment of experts. Comment on how this should be achieved.use in text citation and harvard style of referencing

(15 marks) 1.3 In the context of the case study, critically discuss what a more proactive MRM entail. .use in text citation and harvard style of referencing

QUESTION 2 (20 Marks)

Conduct a critical evaluation of the application of static models in the financial sector of a chosen country, providing pertinent examples to support your analysis..use in text citation and harvard style of referencing

QUESTION 3 (20 Marks)

The CEO of Absa, Arrie Rautenbach together with the executive team have requested you to submit a report highlighting how simulation methods can be embraced in the banking sector. Your response should provide recommendations on the options to be explored in positively adopting simulations in modelling risks. Discuss the contents of your submission..use in text citation and harvard style of referencing

QUESTION 4 (20 Marks)

The Standard Bank Risk Executive Maharsh Boaz is discussing a case with you in which he outlines that the institution has a portfolio that consists of a single asset in the Middle East Stock Exchange. The return of the asset is normally distributed with mean return 20% and standard deviation 30%. The value of the portfolio today is US$100 million. He needs to quantify the risk of a potential loss for this portfolio by year end at a 95% confidence level. Critically discuss the method that you will recommend to him and how it should be administered. Your response should make use of relevant examples..use in text citation and harvard style of referencing

QUESTION 5 (20 Marks)

You are part of a business simulation project where you are tasked with analysing the feasibility of opening a new restaurant in Durban North. Considering this, discuss how a sensitivity analysis can be applied and utilised when assessing the financial feasibility of opening a new restaurant. In addition, describe the key variables that should be incorporated into the sensitivity analysis model to make informed business decisions..use in text citation and harvard style of referencing