CompetencyDifferentiate the dimensions of credit risk and their impact on the aggregate economy.InstructionsRisk management practices within the financial sector are of particular interest to regulators. This is because the failures within this sector disrupt the functionality of the financial system and derail economic growth and efficiency. A historical reference point is the subprime meltdown of 2007 because it is the most prominent example of a massive risk management failure. In this assignment, you will evaluate the consequences of such a failure.You have been hired by the board of Financial Leaders to facilitate a presentation on this topic. You must submit the items you intend to cover to the event planner by next week. Your presentation should be in PowerPoint and should address the bullet points below. You must also submit your presentation notes that you intend to use during the presentation using the Notes feature at the bottom of the PowerPoint slides.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?FFCBA01234Not SubmittedNo PassCompetenceProficiencyMasteryNot SubmittedInaccurately discusses why credit risk management in the financial sector is so significant OR does not discuss why credit risk management in the financial sector is so essential.Accurately discusses why credit risk management in the financial sector is so essential.Accurately discusses why credit risk management in the financial sector is so essential through the use of specific examples.Thoroughly and accurately discusses why credit risk management in the financial sector is so essential through the use of specific examples.Not SubmittedAn invalid argument on why so many banks failed to properly manage risk prior to the 2007 financial collapse is given OR no valid argument on why so many banks failed to properly manage risk prior to the 2007 financial collapse is given.A valid argument on why so many banks failed to properly manage risk prior to the 2007 financial collapse is given.A valid argument on why so many banks failed to properly manage risk prior to the 2007 financial collapse that uses specific examples is given.A thorough and detailed valid argument on why so many banks failed to properly manage risk prior to the 2007 financial collapse that uses specific examples is given.Not SubmittedNo valid consequences of failures of credit risk management are given OR who is affected by any of the failures is not discussed.At least two valid consequences of failures of credit risk management are given AND who is affected by each failure is discussed.At least two valid consequences of failures of credit risk management that include specific examples are given AND who is affected by each failure is thoroughly discussed.More than two valid consequences of failures of credit risk management that include specific examples are given AND who is affected by each failure is thoroughly discussed.