Answer the following questions $($a$)$ to $($e$).$ Each question carries five $(5)$ marks.

A$.$ What are the three principal techniques for calculating and controlling interest rate risk?

B$.$ Why is an entity like a bank required to have an enterprise risk management system?

C$.$ Describe three ways that banks manage credit risk, including its characteristics.

D$.$ Examine the importance and effect of liquidity risk on a bank's balance sheet. How can a bank manage liquidity risk?

E$.$ Describe the importance of net interest income on a bank's profitability.

F$.$ Briefly explain how value at risk $($VaR$)$ works. What are the potential problems with VaR?