Question: Case Study: Washington Mutual was a US Bank that went bankrupt at the end of 2008, due to a number of risk management issues. Read
Case Study: Washington Mutual was a US Bank that went bankrupt at the end of 2008, due to a number of risk management issues. Read the case noted in the link below (also found in the Course Guide), and answer the following questions:
- Explain credit risk from an individual and a loan portfolio management perspective, and discuss how it relates to this case. (7.5 marks)
- Demonstrate how this credit risk management issue can be resolved through the application of a risk management model. (10 marks)
- Discuss how this model can mitigate future credit risk issues. (7.5 marks)
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