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| Section | Objectives |
|---|---|
| Credit Risk | - Credit Risk Mitigation and Management - Credit Risk Analysis and Measurement |
| Asset-Liability Management (ALM) | - Interest Rate Risk in the Banking Book - Liquidity and Funding Risk Management |
| Risk Management Frameworks | - Governance and Risk Culture - Enterprise Risk Management Principles |
| Market Risk | - Market Risk Measurement Techniques - Market Risk Models and VAR |
| Operational Risk | - Operational Risk Measurement and Controls - Operational Risk Identification and Assessment |
| Counterparty Risk | - Counterparty Exposure and Collateral Management - Pre-Settlement and Settlement Risk |
| Funds Transfer Pricing (FTP) | - FTP Framework and Methodologies - FTP Implementation and Governance |
Which of the following introduces model error when basing VaR on a normal distribution with a static mean and standard deviation?
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Which of the following are valid approaches to calculating potential future exposure (PFE) for counterparty risk:
I. Add a percentage of the notional to the mark-to-market value
II. Monte Carlo simulation
III. Maximum Likelihood Estimation
IV. Parametric Estimation
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Which of the following is not a consideration in determining the liquidity needs of a firm (as opposed to determining the time horizon for liquidity risk)?
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The diversification effect is responsible for:
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Which of the following is NOT an approach used to allocate economic capital to underlying business units:
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