RBA - Banks Funding Cost. Bank funding – key issues (June 2009) The fundamentals of risk measurement. Chapter 1: The Basics of Risk Management This chapter introduces how banks work.
It describes how they make money, how they often lose money, and how they try to manage their losses. It includes thirteen short case studies showing how banks have lost money. Chapter 2: Risk Measurement at the Corporate Level: Economic Capital and RAROC Chapter Two discusses the meaning of capital and how the risks that a bank faces are related to the amount of capital that the bank should hold.