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外文文献翻译CommercialBankRiskManagement:AnAnalysisoftheProcess山东建筑大学毕业论文外文文献及翻译1外文文献：CommercialBankRiskManagement:AnAnalysisoftheProcessAbstractThroughoutthepastyear,on-sitevisitstofinancialservicefirmswereconductedtoreviewandevaluatetheirfinancialriskmanagementsystems.ThecommercialbankinganalysiscoveredanumberofNorthAmericansuper-regionalsandquasi±money-centerinstitutionsaswellasseveralfirmsoutsidetheU.S.Theinformationobtainedcoveredboththephilosophyandpracticeoffinancialriskmanagement.Thisarticleoutlinestheresultsofthisinvestigation.Itreportsthestateofriskmanagementtechniquesintheindustry.Itreportsthestandardofpracticeandevaluateshowandwhyitisconductedintheparticularwaychosen.Inaddition,critiquesareofferedwhereappropriate.Wediscusstheproblemswhichtheindustryfindsmostdifficulttoaddress,shortcomingsofthecurrentmethodologyusedtoanalyzerisk,andtheelementsthataremissinginthecurrentproceduresofriskmanagement.1.IntroductionThepastdecadehasseendramaticlossesinthebankingindustry.Firmsthathadbeenperformingwellsuddenlyannouncedlargelossesduetocreditexposuresthatturnedsour,interestratepositionstaken,orderivativeexposuresthatmayormaynothavebeenassumedtohedgebalancesheetrisk.Inresponsetothis,commercialbankshavealmostuniversallyembarkeduponanupgradingoftheirriskmanagementandcontrolsystems.Coincidentaltothisactivity,andinpartbecauseofourrecognitionoftheindustry'svulnerabilitytofinancialrisk,theWhartonFinancialInstitutionsCenter,withthesupportoftheSloanFoundation,hasbeeninvolvedinananalysisoffinancialriskmanagementprocessesinthefinancialsector.Throughthepastacademicyear,on-sitevisitswereconductedtoreviewandevaluatetheriskmanagementsystemsandtheprocessofriskevaluationthatisinplace.Inthebankingsector,systemevaluationwasconductedcoveringmanyofNorthAmerica's山东建筑大学毕业论文外文文献及翻译2super-regionalsandquasi±money-centercommercialbanks,aswellasanumberofmajorinvestmentbankingfirms.Theseresultswerethenpresentedtoamuchwiderarrayofbankingfirmsforreactionandverification.Thepurposeofthepresentarticleistooutlinethefindingsofthisinvestigation.Itreportsthestateofriskmanagementtechniquesintheindustry—questionsasked,questionsanswered,andquestionsleftunaddressedbyrespondents.Thisreportcannotrecitealitanyoftheapproachesusedwithintheindustry,norcanitofferanevaluationofeachandeveryapproach.Rather,itreportsthestandardofpracticeandevaluateshowandwhyitisconductedintheparticularwaychosen.But,eventhebestpracticeemployedwithintheindustryisnotgoodenoughinsomeareas.Accordingly,critiquesalsowillbeofferedwhereappropriate.Thearticleconcludeswithalistofquestionsthatarecurrentlyunanswered,oransweredimpreciselyinthecurrentpracticeemployedbythisgroupofrelativelysophisticatedbanks.Here,wediscusstheproblemswhichtheindustryfindsmostdifficulttoaddress,shortcomingsofthecurrentmethodologyusedtoanalyzerisk,andtheelementsthataremissinginthecurrentproceduresofriskmanagementandriskcontrol.2.Whattypeofriskisbeingconsidered?Commercialbanksareintheriskbusiness.Intheprocessofprovidingfinancialservices,theyassumevariouskindsoffinancialrisks.Overthelastdecadeourunderstandingoftheplaceofcommercialbankswithinthefinancialsectorhasimprovedsubstantially.Overthistime,muchhasbeenwrittenontheroleofcommercialbanksinthefinancialsector,bothintheacademicliteratureandinthefinancialpress.Theseargumentswillbeneitherreviewednorenumeratedhere.Sufficeittosaythatmarketparticipantsseektheservicesofthesefinancialinstitutionsbecauseoftheirabilitytoprovidemarketknowledge,transactionefficiencyandfundingcapability.Inperformingtheseroles,theygenerallyactasaprincipalinthetransaction.Assuch,theyusetheirownbalancesheettofacilitatethetransactionandtoabsorbtherisksassociatedwithit.Tobesure,thereareactivitiesperformedbybankingfirmswhichdonothavedirectbalancesheetimplications.Theseservicesincludeagencyandadvisory山东建筑大学毕业论文外文文献及翻译3activitiessuchas(1)trustandinvestmentmanagement;(2)privateandpublicplacementsthrough``bestefforts''orfacilitatingcontracts;(3)standardunderwritingthroughSection20Subsidiariesoftheholdingcompany;(4)thepackaging,securitizing,distributing,andservicingofloansintheareasofconsumerandrealestatedebtprimarily.Theseitemsareabsentfromthetraditionalfinancialstatementbecausethelatterrelyongenerallyacceptedaccountingproceduresratherthanatrueeconomicbalancesheet.Nonetheless,theoverwhelmingmajorityoftherisksfacingthebankingfirmareon-balance-sheetbusinesses.Itisinthisareathatthediscussionofriskmanagementandofthenecessaryproceduresforriskmanagementandcontrolhascentered.Accordingly,itisherethatourreviewofriskmanagementprocedureswillconcentrate.3.Whatkindsofrisksarebeingabsorbed?Theriskscontainedinthebank'sprincipalactivities,i.e.,thoseinvolvingitsownbalancesheetanditsbasicbusinessoflendingandborrowing,arenotallbornebythebankitself.Inmanyinstancestheinstitutionwilleliminateormitigatethefinancialriskassociatedwithatransactionbyproperbusinesspractices;inothers,itwillshifttherisktootherpartiesthroughacombinationofpricingandproductdesign.Thebankingindustryrecognizesthataninstitutionneednotengageinbusinessinamannerth