
Ultimate access to all questions.
A firm focused on investment management is actively working to strengthen its internal control systems by setting up an independent Risk Management Unit (RMU). A group of executives has been assigned the responsibility of drafting a comprehensive report that specifies the functions and responsibilities of this new division. As they detail the scope of the RMU, what activities and duties should the executives consider including to ensure a robust risk management framework?
A
Identify appropriate software and research reports to help make trading decisions.
B
Generate VaR levels that are consistent with the targets set in the risk plan.
C
Overseemodel analysts while they establish asset valuation models.
D
Assess the quality of models used to measure risk.