Financial Risk Manager Part 2
Get started today
Ultimate access to all questions.
Comments
Loading comments...
Ultimate access to all questions.
In the context of operational risk types, as elaborated by the senior risk consultant during the discussion, which of the following operational losses should Bank JKY classify under the Execution, Delivery, and Process Management category?
A
A client files a lawsuit against Bank JKY for a breach of fiduciary responsibility in the client's investment account, and Bank JKY pays a monetary settlement to the client.
B
The data capture system of Bank JKY fails to capture correct market prices, causing OTC derivative trades to occur at incorrect prices and resulting in significant losses.
C
A rogue trader makes a series of unauthorized derivative trades, which are liquidated by Bank JKY for a sizable loss after the trades are discovered.
D
A corporate client of Bank JKY suffers a major financial loss from a cyber-attack and is therefore unable to make payments on its debt to Bank JKY, which triggers a default.