Financial Risk Manager Part 1
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Ultimate access to all questions.
In accordance with the Basel Committee's recommendations for the effective and precise aggregation of risk data and the ensuing risk reporting, which guideline should banks follow rigorously to ensure robustness in their risk management processes?
A
The integrity principle recommends that data aggregation should be completely automated without any manual intervention.
B
The completeness principle recommends that a financial institution should capture data on its entire universe of material risk exposures.
C
The adaptability principle recommends that a bank should frequently update its risk reporting systems to incorporate changes in best practices.
D
The accuracy principle recommends that the risk data be reconciled with management's estimates of risk exposure prior to aggregation.