Fall 2013, Q21a
This question asks to identify and briefly describe 2 of the 4 risk categories and the examiners report lists:
Asset
Credit
U/W
Other off Balance sheet
As the categories. I know there was no operational or catastrophe risk back in 2013, so I understand why those are not present, but there's no explanation I saw in the wiki for where credit risk and other off sheet balance risk categories come from.
The table given in the wiki lists R1-R3 as Asset risks, I assume at one point R3 was in its own credit risk category? If so this question should probably be marked as partially out of date I would think? Also R0 has no category listed in the wiki while this question seems to indicate that it should fall under the category "Other off Balancesheet Risk".
Does the wiki reflect the current categories and this question is just out of date?
Asset
Credit
U/W
Other off Balance sheet
As the categories. I know there was no operational or catastrophe risk back in 2013, so I understand why those are not present, but there's no explanation I saw in the wiki for where credit risk and other off sheet balance risk categories come from.
The table given in the wiki lists R1-R3 as Asset risks, I assume at one point R3 was in its own credit risk category? If so this question should probably be marked as partially out of date I would think? Also R0 has no category listed in the wiki while this question seems to indicate that it should fall under the category "Other off Balancesheet Risk".
Does the wiki reflect the current categories and this question is just out of date?
Comments
The categorization in the wiki comes straight from Odomirok page 243.
Credit risk is an established risk category in risk management, distinct from asset (or market) risk.
This question was probably made prior to the release of the Odomirok text. Odomirok may be observing a Life practice of grouping Credit with Asset risk.