Module 02 Written Assignment – The Banking System and Risk ManagementFinancial management is a critical component of the broader subject of risk management. Inadequate financial management makes an organization vulnerable to a number of risk exposures.Organizations in the finance sector have a greater impact on the aggregate economy than organizations in other sectors. The consensus among scholars and academics alike is that the private banking industry was insufficiently regulated prior to the most recent financial crisis. This lead to inappropriately relaxed risk management environments within banks, which lead to the near collapse of the global economy.For this assignment, you will write a minimum three-page paperÿ(not including APA title or references pages).ÿIn this paper, please address the following questions:What are the specific ways banks impact the economy?How was the regulatory environment revised?Is the regulation effective?What risk management standards had to be employed as a result of legislation?What are the consequences of failure to meet the standards outlined by regulators?Would a firm be prudent to properly manage their level of leverage and liquidity if it were not regulated? Why or why not? What tools can organizations employ to manage these risks?Be sure to include an introductory paragraph at the beginning and a concluding paragraph at the end of your paper.Because your paper is required to be at least three pages in length, you should use subject headings to label your paper as appropriate.Be sure to include APA citations to support your assertions and to inform your paper.You will need to include an APA formatted reference page with this paper (separate from the body of your paper).Be sure to proofread your paper to ensure that is free from all grammar and spelling errors.Submit your completed assignment by following the directions linked below. Please check theÿCourse Calendarÿfor specific due dates.Save your assignment as a Microsoft Word document. (Mac users, please remember to append the “.docx” extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:Jstudent_exampleproblem_101504Need Help? Click here for complete drop box instructions.