QUESTION: 321 Topic: 4, Volume D

Which of the following statements is correct?

The best strategy to treat and mitigate risk is avoiding the risk by avoiding the business
The best strategy to treat and mitigate risk is transferring the risk to another party, e. g. by transfer to an insurance company
The best strategy to treat and mitigate risk is to establish the appropriate processes for identifying, assessing, managing, monitoring and reporting risks
The best strategy to treat and mitigate risk is to reduce the negative effect of the risk, e. g. by hedging

Answer(s): C

QUESTION: 322 Topic: 4, Volume D

In the event that standard settlement instructions are provided by a third party, full authentication and authorization of those SSIs should be independently performed by?

Sales I trading staff
Operations staff
Nostro staff
Front office staff

Answer(s): B

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QUESTION: 323 Topic: 4, Volume D

Which of the following statements about operational risk awareness is correct?

It is good practice to collect and disclose incidents and near-misses for the future benefit of the professional community.
It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.
A report describing operational risks should be made at the request of the front office.
A report describing operational risks should be made at least once a year and provided to the front office.

Answer(s): B

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QUESTION: 324 Topic: 4, Volume D

What is the expression used to describe a genuine error (wrong amount, wrong side, wrong rate) made by a dealer in the execution of an order on an electronic platform?

mis-stroke
slip-bid
mis-hit
broken trade

Answer(s): C

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QUESTION: 321 Topic: 4, Volume D

QUESTION: 322 Topic: 4, Volume D

QUESTION: 323 Topic: 4, Volume D

QUESTION: 324 Topic: 4, Volume D