QUESTION $1(100$ MARKS$)1\mathrm{.}1$ Considering the case study provided, critically analyze the physical risks that banks face and discuss why they are increasingly integrating these risks into their business models. Support your response with relevant examples and illustrations. $(20$ marks$)1\mathrm{.}2$ As a risk management professional at a leading bank in Southern California, analyze what a cost containment plan involves in the context of physical risks impacting the bank$$s asset portfolio. Make use of relevant examples when describing the concept. $(20$ marks$)1\mathrm{.}3$ As a risk management specialist, you have been tasked by one of the executives of a prominent bank to draft a comprehensive business continuity framework for the bank's portfolio. Highlight the key variables and components that the framework should address, using information and assumptions derived from the case study to support your response. $(20$ marks$)1\mathrm{.}4$ As extracted from the case study, $$a bank can start by assessing its portfolio to measure peril$-$specific exposure and identify the hot spots most relevant to the specific asset class and industry assessed. Based on the mix of perils in a portfolio, the bank can identify an initial set of mitigation tactics in line with market conditions, regulatory constraints, and the bank$$s overall strategy$.$ Using any example of your choice within the banking sector, demonstrate how hazard risk zones and controls can be applied in making decisions. Provide relevant examples and illustrations for this question. $1\mathrm{.}5$ With reference to the banking sector critically discuss the significance of the Basel III framework in responding to the highlighted risks. Make use of relevant examples. $(20$ marks$)$