About This Chapter
Capital Markets in Risk Management - Chapter Summary
In this chapter, our expert finance instructors explain how risk management is affected by capital markets. Work through these simple and engaging lessons to review bank activity safeguards, U.S. treasury regulations, securitization theory, catastrophe bonds and the history behind the bankruptcy of Lehman Brothers. When you finish a lesson, take the accompanying self-assessment quiz to make sure you understand the information. The chapter also comes with a comprehensive multiple-choice exam. You can complete the chapter at your own pace, and it's accessible on any computer or mobile device. By the end of the chapter, you should be equipped to:
- Tell how banking activities are safeguarded and controlled
- Explain how risk management is affected by regulation
- Identify regulatory measures that the U.S. Treasury puts on financial institutions
- Summarize the theory of securitization
- Outline the process and principles of mock securitization
- Discuss the history and uses of catastrophe bonds
- Analyze the bankruptcy of Lehman Brothers Holdings, Inc.
1. Effects of Regulation on Risk Management
In this lesson, we'll define risk management. You'll learn about the advantages and disadvantages of regulations on risk management and its impact on consumers and the industry.
2. Safeguards & Controls of Banking Activities
Money is one of the most highly valued items a person has. Is that money safe when it is deposited in a bank? In this lesson, you'll learn how banks safeguard your money so that you can be confident with every deposit you make.
3. U.S. Treasury Regulatory Measures on Financial Institutions
This lesson explains why the U.S. Treasury regulates financial institutions. It will then list, define, and explain the major regulations that it enforces to protect a consumer's money.
4. Catastrophe Bonds: History & Uses
This lesson first defines catastrophe bonds. Then we'll go over a brief history of these securities before discussing the fundamentals of how they are used for risk management purposes.
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Other chapters within the Financial Accounting: Help and Review course
- Introduction to Accounting: Help and Review
- Financial Statements in Accounting: Help and Review
- Mechanics of the Accounting Cycle: Help and Review
- Project Evaluation & Analysis
- Preparing Financial Statements: Help and Review
- Internal Controls in Accounting: Help and Review
- Merchandising Operations and Inventory in Accounting: Help and Review
- Current and Long-Term Liabilities in Accounting: Help and Review
- Adjusting Accounts & Preparing Financial Statements: Help and Review
- Taxation of Business Entities
- Accounting Changes & Errors
- Classifying Costs in Accounting
- Cost Accounting Methods
- Cash Flow Statements & Disclosures
- Asset & Inventory Management
- Small Business Financing
- Small Business Accounting
- Financial Reporting
- Banking, Insurance & Monetary Policy
- Types of Financial Risk
- Credit Risk
- Derivatives in Finance Overview
- Managing Financial Risk
- Financial Risk & Decision-Making