Risk Management for Fannie Mae: Overview, Stakeholders, and Risk Model

This report provides an overview of Fannie Mae, its stakeholders, and a risk model of 20 risks. The report analyzes the company's share price, debt holdings, and competitive environment. It also identifies key stakeholders, including internal and external stakeholders, and their interests. The risk model identifies 20 risks and proposes a risk identification model for Fannie Mae.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:
Author Note:

1
RISK MANAGEMENT
Executive Summary:
The reports that Fannie Mae plays a very important role in ensuring liquidity of the American
mortgage market. It also ensures that the mortgage investors are able to invest in the mortgage
market which in turn boosts the securities market. The study then goes on to show the different
types of risks Fannie Mae encounters. The risk culture of the company is average which means
that investors should invest in the shares only on long term basis.

2
RISK MANAGEMENT
Table of Contents
1. Company overview:.....................................................................................................................3
Location of business and operation scope:......................................................................................3
Business mix, operating hours:........................................................................................................3
Share price:......................................................................................................................................3
Share price comparison with two similar companies:.....................................................................5
Debt carried by the company:..........................................................................................................6
Key Stakeholders:............................................................................................................................6
Established date:..............................................................................................................................7
Competitive environment-low/medium/high:.................................................................................7
Other relevant information:.............................................................................................................7
2. Key stakeholders:.........................................................................................................................7
3. Finding/Section Result:.............................................................................................................10
Risk model of 20 risks:..................................................................................................................10
Diagram of top ten risks:...........................................................................................................26
Radar Diagram with at least 7 identified criteria relating to analysis:..........................................30
4. Report Conclusion:....................................................................................................................31
References:....................................................................................................................................33

3
RISK MANAGEMENT
1. Company overview:
The Federal National Mortgage Association, FNMA or Fannie Mae is a publicly
traded American company and sponsored by the Government of the US, which invests in the
secondary mortgage market by pooling different types of mortgage loans. The loans are traded in
the secondary market in the forms of mortgage back securities of different types like shares and
bonds (Fanniemae.com, 2019). The body’s main function is to sell these mortgage backed
securities to a large pool of investors which ensure more inflow of cash in the mortgage markets,
thus curbing the impact of thrift investment companies on the American economy
(Krishnamurthy, 2017).
Location of business and operation scope:
Fannie Mae is headquartered in Washington D.C. and has its branches Virginia, Atlanta,
Chicago, Plano, Maryland, Philadelphia, Los Angeles, Massachusetts, California and New York.
The scope of operation of Fannie Mae consists of two main pillars namely, strengthening
the secondary mortgage market in the US. This ensuring liquidity to the participants in the
securities market backed by mortgage (Adrian & Jones, 2018).
Business mix, operating hours:
The business mix of Fannie Mae consists of mortgage products for households and
companies seeking to mortgage their assets to acquire financial resources. The operating hours of
Fannie Mae range from 8 am to 8 pm on Monday to Friday. The customer care of the company
are open from 9 am to 5 pm.

4
RISK MANAGEMENT
Share price:
The share price of as shown in the graph below shows that company enjoys a very
unstable position in the American stock market. The share price of the company reached a high
in 2014 after which it followed a bearish trend intercepted with period rises. The share price of
the company again rose in 2017 after which its performance fell. The unstable trend of the share
price of Fannie Mae continues into 2019 and is showing signs of recovering.
Figure 1. Graoph showing share price of Fannie Mae for 5years
(Source: Bloomberg.com, 2019)

5
RISK MANAGEMENT
Share price comparison with two similar companies:
Figure 2. Graph showing performance of Wells Fargo Bank and JPMorgan Chase Bank against
Fannie Mae for 5 years
(Source: Bloomberg.com, 2019)
The graph above compares the 5 years performances of Fannie Mae against two of its
largest competitors namely, Wells Fargo Bank and JP Morgan Chase Bank. The graph shows
that these two financial institutions, also big players in the mortgage securities market enjoy
higher share prices compared to Fannie Mae (Philippon, 2015). This means in comparison to the
latter, they are able to acquire higher capital from the American capital market.

6
RISK MANAGEMENT
Debt carried by the company:
Figure 3. Debt holdings of Fannie Mae for 2018
(Source: Fanniemae.com, 2019)
The excerpt of the debt funding summary report shows that Fannie Mae holds debts from
Federal Funds borrowings and other short term liabilities. The company also holds debts in the
forms of EX Discount notes and discount notes.
Key Stakeholders:
The key stakeholders of Fannie Mae consists of internal and external stakeholders. The
employees and management consists of internal stakeholders. The customers, government,
investors, financing bodies, media and the society as a whole (El-hadj, Faye & Geh, 2018).

7
RISK MANAGEMENT
Established date:
The date of establishment of Fannie Mae was 1938 which means that the company is
over 80 years in business till 2019.
Competitive environment-low/medium/high:
The competitive environment of Fannie Mae is highly competitive. This is evident from
that fact the American mortgage market is dominated by organisations like Wells Fargo and JP
Morgan Chase Bank Limited (Jarzabkowski et al. 2018).
Other relevant information:
Fannie Mae ensures liquidity in the American mortgage market by ensure economic
development in the market. This is because by investing the mortgage market, the company
curbs the impact of the small mortgage companies from duping investor (Betts, 2018).
2. Key stakeholders:
Influenc
e
High
KEEP
SATISFIED(Government,
investors, stock
exchanges)
MANAGE
CLOSELY(Management,
employees, customers
Low
MONITOR (minimum
effort)
Financing bodies, banks
KEEP INFORMED(Media,
society)
Low High
Interests
Figure 4. Table showing the main stakeholders of Fannie Mae
(Source: Author)

8
RISK MANAGEMENT
Fannie Mae being a leading mortgage financing and responsible for ensure liquidity in
the mortgage market by pooling in other types of assets like shares and bonds, comes under
impacts of several groups of stakeholders consisting of groups as well as individuals. It would be
prudent to divide the stakeholders impacting Fannie Mae into two broad groups namely internal
and external stakeholders (Trevino & Nelson, 2016). The internal stakeholders of Fannie Mae
consist of the apex management under the leadership of the CEO and the employees. The
‘Corporate Governance’ page of the body clearly mentions that the board of directors of the
company is constituted by Federal Housing Finance Agency which means that the Government
of the US is also an internal stakeholder in this case (Fhfa.gov, 2019). The responsibility of the
management board is to form strategies under governance of the FHFA. The interests of the
management lies in generating high profits and getting more support from the government. The
next group of stakeholders consist of employees who actually implement the instructions of the
managements. De Silva, Howells and Meyer (2018) mention that the responsibility of the
employees of lie in providing appropriate mortgage products to clients to allow them to invest in
assets. The responsibilities of the employees also pertains to operating in the American financial
market in compliance with legislations and ethics. The interests of the employees lie in gaining
professional developmental opportunities. Khan, Lalitha and Omonaiye (2017) mention that
employees are the internal customers whose interests have to be upheld in order to ensure
seamless service provision to the external customers. Thus, in this respect it can be pointed out
that Fannie Mae should ensure it provides sufficient professional developmental opportunities to
its employees like salary hikes, promotions and paid family trips.
The first external stakeholder group which Fannie has to consider and manage closely are
the investors in the mortgage investors both individuals and institutions. Aalbers (2016)

9
RISK MANAGEMENT
mentions that the main function of the mortgage market lies in making capital available to
mortgagers against the property mortgaged. Korschun (2015) in this respect mentions that the
investors who invest in the mortgage and real estate are important external stakeholders. Fannie
Mae has to ensure that it is able to ensure high liquidity to in the mortgage market to ensure high
ROI to these investors. The next group of stakeholders consists of the banks which provide
gateway for the financial transaction, thus actually ensuring the liquidity in the mortgage market.
The responsibility of Fannie Mae is to protect the interests of the banks by investing in their
products, thus generating revenue for the latter (Oatley & Petrova, 2016). The next external
stakeholders which Fannie Mae should consider is the stock exchange. The stock exchanges like
OTC Market provide platform to the company to float its shares and raise capital
(Otcmarkets.com, 2019). Fannie Mae msut protect the interests of the OTC Market by complying
with the policies and directives laid down by the body. The next important group of stakeholders
which Fannie Mae should take into account is investors investing in its shares floated on the
stock exchange. Huang et al.(2016) mention in this respect that companies like Fannie Mae
should protect the interests of the investors by giving them high returns on the investments.
Similarly, the shareholders should encourage important decision making of the board of
directors. The media as mentioned by Cho, Furey and Mohr (2017) constitute an important
stakeholder group since it enables the company spread awareness about its decisions among the
other stakeholders like investors and clients. Thus, it can be inferred from the discussion that
Fannie Mae supports a large group of stakeholders and should operate in order to protect their
interests (Navarro, Moreno and Al-Sumait, 2017).

10
RISK MANAGEMENT
3. Finding/Section Result:
Risk model of 20 risks:
The top 20 risks identified below are changes in government legislations, weakening of
the international relationships of the United States of America, weakening of USD in the
international currency exchange market, economic weakening of the American economy and
falling in the per capita income in the American society. The sixth, seventh, eight, nine and tenth
risks are shifting of investment patterns of investors to more secure modes of investments like
bonds, advanced technology renders existing technology redundant, data thefts, rising frequency
of natural calamities and rising environmental pollution. The eleventh, twelfth, thirteenth,
fourteenth and fifteenth risks are changes in laws, crime, higher turnover of employees,
resistance to changes, investor poaching and falling revenue and threat of newly entering
companies respectively. The other risks are risks of employee theft, fire, WHS risks, risk due to
political corruption and risks due to IPR infringement. The above mentioned risks have been
analysed in terms of aspects like impacts on the business and probable mitigation actions, if
possible. The risk identification model of the risks would consist of the six steps. They are
identification of risks by the stakeholders including management, employees and external
stakeholders followed by reporting of the risks to the management of Fannie Mae. The
management then consult the relevant stakeholders like the government and investors to analyse
the probable mitigation methods (Brustbauer, 2016). The leads to formation of risk mitigation
strategies at the apex level. The subordinates then execute and implement the strategies. The
management of the Fannie Mae monitors the actual performance of the risk mitigation strategies
and amend them according to the requirement of the situation.

11
RISK MANAGEMENT
Figure 5. Risk identification model of Fannie Mae
(Source: Author)
R
i
s
k
N
o
Risk
Cate
gory
Risk
Inci
dent
Risk
Des
cript
ion
Curr
ent
Cont
rols
Compl
iance
Contro
ls/Awa
reness
Lik
elih
ood
Con
sequ
ence
R
at
in
g
Acc
ept/
Reje
ct
If
Re
je
ct
-
fu
rth
er
co
ntr
Lik
elih
ood
Con
sequ
ence
R
at
in
g
Ow
ner
Monitpring
Identification of risks
by the stakeholders
Reporting of the risks
to the management of
Fannie Mae
Consult the relevant
stakeholders
Formation of risk
mitigation strategies
Execution and
implementation the
strategies

12
RISK MANAGEMENT
ol
s
1 Polit
ical
Cha
nges
in
gove
rnm
ent
legis
latio
ns
Gov
ern
men
t
poli
cies
requ
ire
the
Fan
nie
Mae
to
chan
ge
its
mod
es of
oper
atio
ns.
The
com
pany
cann
ot
take
any
actio
n to
prev
ent
chan
ges
in
the
laws
.
The
apex
man
age
A 4 E Acc
ept
N
A
C 4 E CE
O/
Ow
ners

13
RISK MANAGEMENT
The
com
pany
even
suff
ers
loss
es
faili
ng
to
com
ply
with
the
new
poli
cies.
ment
of
the
com
pany
have
to
inco
rpor
ate
the
new
laws
in its
mod
e of
oper
ation
s.
2 Polit
ical
Wea
keni
ng
inter
Can
cella
tion
of
The
com
pany
cann
D 4 H Acc
ept
N
A
C 4 E CE
O/
Ow
ners

14
RISK MANAGEMENT
natio
nal
relat
ions
hips
of
the
US
cont
racts
to
inve
st in
the
mort
gage
sche
mes
by
rich
forei
gn
clien
ts
ot
take
any
actio
n to
prev
ent
chan
ges
in
the
laws
.
The
apex
man
age
ment
of
the
com
pany
have

15
RISK MANAGEMENT
to
inco
rpor
ate
the
new
laws
in its
mod
e of
oper
ation
s.
3 Econ
omic
Wee
keni
ng
of
USD
in
the
inter
natio
nal
Fan
nie
Mae
gene
rates
lowe
r
ROI
on
its
Effic
ient
fund
man
ager
s
A 5 E Acc
ept
N
A
B 3 H Man
ager
s

16
RISK MANAGEMENT
curr
ency
mar
ket
forei
gn
inve
stme
nts
4 Econ
omic
Eco
nom
ic
wea
keni
ng
of
the
Ame
rican
mar
ket
Fan
nie
Mae
gene
rates
lowe
r
reve
neu
due
to
lack
of
inve
stors
Effic
ient
fund
man
ager
s
c 4 E Acc
ept
N
A
C 3 H CE
O/
Ow
ners
5 Soci
al
Falli
ng
per
Fan
nie
Mae
Effic
ient
fund
N/A c 4 E Acc
ept
N
A
C 3 H Man
ager
s

17
RISK MANAGEMENT
capit
a
inco
me
in
the
US
gene
rates
lowe
r
busi
ness,
thus
suff
erin
g
reve
nue
risks
man
ager
s
6 Soci
al
Shift
ing
of
inve
stme
nt
patte
rn of
inve
stors
The
inve
stors
may
shift
to
mor
e
secu
red
Effic
ient
fund
man
ager
s
B 3 H Acc
ept
N
A
C 3 H Man
ager
s

18
RISK MANAGEMENT
mod
e of
inve
stme
nts
like
bon
ds
and
savi
ng
acco
unt
7 Tech
nolo
gical
Adv
ance
d
tech
nolo
gy
rend
ers
curr
ent
The
capit
al
whic
h
Fan
nie
Mae
inve
sts
Effic
ient
fund
man
ager
s
A 4 E Acc
ept
N
A
C 3 H Man
ager
s

19
RISK MANAGEMENT
tech
nolo
gy
redu
ndan
t
in
tech
nolg
y
goes
to
wast
e
8 Tech
nolo
gical
Data
theft
s
Loss
of
sens
etive
data
pert
aini
ng
to
inve
stors
incl
udin
g
fina
Tech
nolo
gical
depa
rtme
nt
A 5 E Acc
ept
N
A
A 5 E Man
ager
s

20
RISK MANAGEMENT
ncial
data
9 Envi
ron
ment
al
Risi
ng
natu
ral
cala
miti
es
Loss
of
prop
erty
and
man
pow
er
All
the
depa
rtme
nt
A 5 E Acc
ept
N
A
C 5 E CE
O/
Ow
ners
1
0
Envi
ron
ment
al
Risi
ng
envr
ion
ment
al
poll
utio
n
Insta
llati
on
of
tech
nolo
gy
usin
g
less
elect
ricit
y
All
the
depa
rtme
nt
B 3 H Acc
ept
N
A
C 2 M CE
O/
Ow
ners

21
RISK MANAGEMENT
1
1
Lega
l
Cha
nges
in
laws
Cha
nge
of
orga
nisat
iona
l
poli
cies
All
the
depa
rtme
nt
B 3 H Acc
ept
N
A
C 4 E CE
O/
Ow
ners
1
2
Lega
l
Cri
me
legal
char
ges
All
the
depa
rtme
nt
C 3 H Acc
ept
N
A
C 4 E CE
O/
Ow
ners
1
3
Oper
ation
al
High
er
turn
over
of
empl
oyee
s
Disr
upti
on
of
prod
ucti
vity
All
the
depa
rtme
nt
C 3 H Acc
ept
N
A
C 4 E CE
O/
Ow
ners
1 Oper Resi Disr All C 4 E Acc N C 4 E CE

22
RISK MANAGEMENT
4 ation
al
stan
ce to
chan
ges
upti
on
of
prod
ucti
vity
the
depa
rtme
nt
ept A O/
Ow
ners
1
5
Thre
at of
new
enter
ing
com
pany
Inve
stor
poac
hing
and
falli
ng
reve
nue
Red
ucti
on
of
reve
nue
All
the
depa
rtme
nt
C 4 E Acc
ept
N
A
C 5 E CE
O/
Ow
ners
1
6
Risk
of
empl
oyee
theft
Loss
of
asset
s
inclu
ding
infor
mati
Red
ucti
on
of
reve
nue
All
the
depa
rtme
nt
C E Acc
ept
N
A
C 6 E CE
O/
Ow
ners

23
RISK MANAGEMENT
on
1
7
Fire Loss
of
asset
s
inclu
ding
infor
mati
on
Mas
sive
loss
of
reve
nue
and
busi
ness
data
All
the
depa
rtme
nt
C E Acc
ept
N
A
C 7 E CE
O/
Ow
ners
1
8
WH
S
risks
Loss
of
prod
uctiv
ity
due
to
injur
ies/d
eath
of
empl
Leg
al
actio
ns
from
gove
rnm
ents
All
the
depa
rtme
nt
C E Acc
ept
N
A
C 8 E CE
O/
Ow
ners

24
RISK MANAGEMENT
oyee
s
1
9
Risk
due
to
polit
ical
corr
uptio
n
Loss
of
reso
urce
s
and
reve
nue,
inhi
bitio
n in
getti
ng
appr
oval
s
and
sabc
tions
from
the
Busi
ness
opp
ortu
nity
loss
All
the
depa
rtme
nt
C E Acc
ept
N
A
C 9 E CE
O/
Ow
ners

25
RISK MANAGEMENT
gove
rnm
ent
2
0
Risk
due
to
IPR
infri
ngm
ent
Loss
of
reso
urce
s
and
reve
nue,
inhi
bitio
n in
getti
ng
appr
oval
s
and
sabc
tions
from
Busi
ness
opp
ortu
nity
loss
All
the
depa
rtme
nt
C E Acc
ept
N
A
C 10 E CE
O/
Ow
ners

26
RISK MANAGEMENT
the
gove
rnm
ent
Diagram of top ten risks:
R
i
s
k
N
o
Ris
k
Cat
ego
ry
Ris
k
Inci
den
t
Ri
sk
De
scr
ipti
on
Cur
ren
t
Co
ntr
ols
Com
plian
ce
Cont
rols/
Awar
enes
s
Li
ke
lih
oo
d
Co
ns
eq
ue
nc
e
R
a
ti
n
g
Ac
ce
pt/
Rej
ect
If
R
ej
e
ct
-
f
u
rt
h
e
r
c
o
n
tr
ol
s
Li
ke
lih
oo
d
Co
ns
eq
ue
nc
e
R
a
ti
n
g
Ow
ner
1 Pol
itic
al
Ch
ang
es
in
gov
ern
me
nt
legi
slat
ion
s
Go
ver
nm
ent
pol
ici
es
re
qui
re
the
Fa
nni
e
Ma
e
to
ch
an
ge
its
mo
de
Th
e
co
mp
any
can
not
tak
e
any
acti
on
to
pre
ven
t
cha
ng
es
in
the
law
s.
A 4 E Ac
ce
pt
N
A
C 4 E CE
O/
Ow
ner
s

27
RISK MANAGEMENT
s
of
op
era
tio
ns.
Th
e
co
mp
an
y
ev
en
suf
fer
s
los
se
s
fail
ing
to
co
mp
ly
wit
h
the
ne
w
pol
ici
es.
Th
e
ape
x
ma
na
ge
me
nt
of
the
co
mp
any
hav
e
to
inc
orp
ora
te
the
ne
w
law
s in
its
mo
de
of
op
era
tio
ns.
2 Pol
itic
al
We
ake
nin
g
inte
rna
tio
nal
rela
tio
nsh
ips
of
the
US
Ca
nc
ell
ati
on
of
co
ntr
act
s
to
inv
est
in
the
mo
rtg
ag
e
sc
he
me
Th
e
co
mp
any
can
not
tak
e
any
acti
on
to
pre
ven
t
cha
ng
es
in
the
law
D 4 H Ac
ce
pt
N
A
C 4 E CE
O/
Ow
ner
s

28
RISK MANAGEMENT
s
by
ric
h
for
eig
n
cli
ent
s
s.
Th
e
ape
x
ma
na
ge
me
nt
of
the
co
mp
any
hav
e
to
inc
orp
ora
te
the
ne
w
law
s in
its
mo
de
of
op
era
tio
ns.
3 Ec
on
omi
c
We
eke
nin
g
of
US
D
in
the
inte
rna
tio
nal
cur
ren
cy
ma
rke
t
Fa
nni
e
Ma
e
ge
ne
rat
es
lo
we
r
RO
I
on
its
for
eig
n
inv
est
Effi
cie
nt
fun
d
ma
na
ger
s
A 5 E Ac
ce
pt
N
A
B 3 H Ma
na
ger
s

29
RISK MANAGEMENT
me
nts
4
Ec
on
omi
c
Ec
on
omi
c
we
ake
nin
g
of
the
Am
eric
an
ma
rke
t
Fa
nni
e
Ma
e
ge
ne
rat
es
lo
we
r
rev
en
eu
du
e
to
lac
k
of
inv
est
or
s
Effi
cie
nt
fun
d
ma
na
ger
s
c 4 E
Ac
ce
pt
N
A C 3 H
CE
O/
Ow
ner
s
5 So
cial
Fall
ing
per
cap
ita
inc
om
e in
the
US
Fa
nni
e
Ma
e
ge
ne
rat
es
lo
we
r
bu
sin
es
s,
th
us
suf
fer
ing
rev
en
ue
ris
ks
Effi
cie
nt
fun
d
ma
na
ger
s
N/A c 4 E
Ac
ce
pt
N
A C 3 H
Ma
na
ger
s
6 So
cial
Shi
ftin
Th
e
Effi
cie B 3 H Ac
ce
N
A C 3 H Ma
na

30
RISK MANAGEMENT
g
of
inv
est
me
nt
pat
ter
n
of
inv
est
ors
inv
est
or
s
ma
y
shi
ft
to
mo
re
se
cu
re
d
mo
de
of
inv
est
me
nts
lik
e
bo
nd
s
an
d
sa
vin
g
ac
co
un
t
nt
fun
d
ma
na
ger
s
pt ger
s
7 Tec
hn
olo
gic
al
Ad
van
ced
tec
hn
olo
gy
ren
der
s
cur
ren
t
tec
hn
olo
gy
red
un
dan
Th
e
ca
pit
al
wh
ich
Fa
nni
e
Ma
e
inv
est
s
in
tec
hn
olg
y
Effi
cie
nt
fun
d
ma
na
ger
s
A 4 E Ac
ce
pt
N
A
C 3 H Ma
na
ger
s

31
RISK MANAGEMENT
t
go
es
to
wa
ste
8
Tec
hn
olo
gic
al
Dat
a
the
fts
Lo
ss
of
se
ns
eti
ve
dat
a
pe
rta
ini
ng
to
inv
est
or
s
inc
lud
ing
fin
an
cia
l
dat
a
Tec
hn
olo
gic
al
de
par
tm
ent
A 5 E
Ac
ce
pt
N
A A 5 E
Ma
na
ger
s
9
En
vir
on
me
ntal
Ris
ing
nat
ura
l
cal
ami
ties
Lo
ss
of
pr
op
ert
y
an
d
ma
np
ow
er
All
the
de
par
tm
ent
A 5 E
Ac
ce
pt
N
A C 5 E
CE
O/
Ow
ner
s
1
0
En
vir
on
me
ntal
Ris
ing
env
rio
nm
ent
al
poll
uti
on
Ins
tall
ati
on
of
tec
hn
olo
gy
usi
All
the
de
par
tm
ent
B 3 H Ac
ce
pt
N
A
C 2 M CE
O/
Ow
ner
s

32
RISK MANAGEMENT
ng
les
s
ele
ctr
icit
y
Radar Diagram with at least 7 identified criteria relating to analysis:
The seven identified criteria to measure the intensity or impacts of risks are negative
changes in the profits, negative changes in the brand value of Fannie Mae, negative changes in
the capital generation of Fannie Mae, increasing in employee turnover, decrease in ROI, increase
in legal actions of one or more stakeholders like investors and government and increase in
expenditure at higher rate in comparison to net profits.
1
2
3
45
6
7
0
5
10
Chart Title
Intensity level Risks KPIs
1 Negative changes in the profits
2 Negative changes in the brand
value of Fannie Mae
3 Negative changes in the capital
generation of Fannie Mae
4 Increasing in employee turnover

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RISK MANAGEMENT
5 Decrease in ROI
6 Increase in legal actions
7 Increase in expenditure at higher
rate in comparison to net profits
4. Report Conclusion:
It can be concluded from the discussion that Fannie Mae in spite of being one of the top
mortgage financing companies and sponsored by the government, suffers from several risks. The
risk culture of the company can be scored 50 out of 100 which means that the company is an
average risk culture as shown. There were several delivery gaps in the findings. First, the actual
data regarding the investment pattern of Fannie and its customer data are not available on its
website. This limited the findings of the research to the data available on the website and the
other secondary sources like Bloomberg.

34
RISK MANAGEMENT
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