Risk management practices within the financial sector are ofparticular interest to regulators. This is because the failures withinthis sector disrupt the functionality of the financial system and deraileconomic growth and efficiency. A historical reference point is thesubprime meltdown of 2007 because it is the most prominent example of amassive risk management failure. In this assignment, you will evaluatethe consequences of such a failure.

You have been hired by the board of Financial Leaders to facilitate apresentation on this topic. You must submit the items you intend tocover to the event planner by next week. Your presentation should be inPowerPoint and should address the bullet points below. You must alsosubmit your presentation notes that you intend to use during thepresentation using the Notes feature at the bottom of the PowerPointslides.

• Discuss why credit risk management within the financial sector is so essential.
• Why do you think so many banks failed to properly manage risk prior to the financial collapse?
• What are the consequences of failing to manage credit risk and whom do they affect?
• What measures can banks employ to mitigate credit risks?