Should the risk management process be done outside a firms treasury department?

Answer 1

risk management process should be carried out in a treasury department because the treasury department is designed to make sure that the capital of a bank is at an acceptable level so that minimizes risks.To achieve this objective the treasury department is made up of3 offices which are front office,middle office and back office.Amongst them the middle office is responsible for risk research and to apply some mitigation actions to the risks encountered.It also make sure that there is appropriate board to deal against risks being encountered by the organisriskriskstion.The treasury department is critically responsible for identifying operational risks, financial risks, default risks,interest rate .Through carrying out this operations it is well phased in applying the appropriate techniques in minimizing or eliminating these risks by so doing the risk management process should remain in treasury department.