Past Exam Flashcards
A Key Reason why Risk Management should be extended throughout a project is because
Reduces likelihood of unexpected outcomes
ERM compares what two factors
Risk profile and exposure
Maturity Ladders enable specific analysis of ?
Cash Flow
What is the difficulty with analysing the factors affecting a certain risk type
Lack of Data
External and internal risks often are address simultaneously as:
They often overlap
A firm is found in breach of a principles based framework – What action will be taken by the regulator?
License revoked
What is the ratio of capital adequacy laid out in the Basel principles?
Leverage Ratio
What Determines liquidity Risk within a Firms assets:
Marketability
Loss casual Analysis covers what?
Root Causes of risk
Lessons learned from an Operational Risk events should be:
use to update operational risk policy
A Graphical representation of operational risk losses will tend to:
Exhibit Fat Tails
What type of risk affects the price of options:
Volatility
Asset allocation involves what?
To reduce risk via diversification
Which Measure is used to determine funding requirements at different confidence levels?
Liquidity at risk
Effective market risk function should monitor P&L at least once a:
Day
BIS require the public disclosure of :
Org Structure
A typical investment mandate must include the details of:
Tracking error
How does Interest Rate risk and commodity price risk interact:
Nothing Happens
What is an example of a market risk limit?
- Stop/loss
What boundary issues cause issues in credit risk:
- internal processes