Risk Management

Capital One Financial Corp. is a large financial institution, whose principal lines of business are credit cards, consumer banking, and commercial banki Discussion and Analysis ("MD&A") accompanying their annual report, they identify eight major risk categories related to their business activities. Review Capital One's the Risk Management section of the 2017 MD&A, with particular emphasis on the section entitled "Risk Categories". (The link is : hftp://investortapitalone.com/phoenix.zhtml?c=70667&p=irol-SECText& TEXT=aHROcDovL2FwaS5OZW5rd216YXJkLmNvbS9maVVxpbmcueG1sP2IwYWdIPTExNDE4MTUxJkRTRVE9MCZTRVE9MCZTUURFUOM9UOVDVEIPTI After you read the link Answer the following questions - List, in your own words, the eight major categories of risk discussed. - For each of these risks, briefly discuss how Capital One manages the risk. - Summarize how Credit Risk relates to Capital One's lines of business, and briefly discuss three metrics they use to identify or measure the existence - Summarize how Interest Rate Risk (discussed in "Market Risk Profile") relates to Capital One's lines of business. Briefly discuss the two ways they interest rate risk. (You do not need to discuss the actual results of their models, just the approach.)