About This Chapter
Regulatory Responses to Risk Management - Chapter Summary
In this chapter, you'll find short easy-to-understand lessons on regulatory responses to risk management to help you fully understand these concepts. Subjects covered here include safeguards and controls on banking activities and regulatory measures imposed by the US Treasury. Feel free to go back and review the lessons as many times as needed to ensure your comprehension. The lesson quizzes and chapter test also help to identify any areas where you're struggling and might need to focus your attention. If you still have questions, reach out to one of our experts through the Dashboard. After completing this chapter, you should be able to:
- Explain the effects of regulation on risk management
- Define safeguards and internal controls and describe how the two are interrelated
- Identify the five goals of safeguards in the banking industry
- Outline the regulatory measures the US Treasury imposes on financial institutions
- Recount events that led the U.S. economy into the Great Recession and describe the recovery process
- Detail the Dodd-Frank Act and its affect on America's financial situation
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. The Agency Problem in Finance: Definition & Examples
The agency problem can be a really big issue in the finance world. Find out what an agency problem is and look at some real-world examples. Then, test yourself on your new knowledge.
5. The American Economy & Government Policy in 2008
The rise of sub-prime mortgage loans and heightened real estate speculation led to the collapse of the housing market, which ushered in the Great Recession in 2007. Learn more about this economic downturn and its effects in this lesson.
6. What was the Great Recession? - Timeline, Facts, Causes & Effects
Beginning in 2007 and through 2009, the world economy was in turmoil. In this lesson, you'll learn about the Great Recession; why it happened, the events that made it worse, and what it meant to the United States and the world.
7. How the Government Protects Your Money During a Financial Crisis
In this lesson, you'll learn about some of the causes of the financial crisis of 2008 that brought us the Great Recession. You'll also learn what steps the federal government can take to help protect your money when the next financial crisis hits.
8. Business Case Study: Bankruptcy of Lehman Brothers Holdings, Inc.
On Sept. 15, 2008, Lehman Brothers filed the biggest bankruptcy in US history. Let's look at how Lehman rose to be one of the biggest investment banks in America, and how it all unraveled.
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