
Ultimate access to all questions.
A risk consultant is presenting to a group of junior risk managers on how risk management failures contributed to financial disasters. The consultant focuses on the lessons learned from examining historical financial disasters in the US and around the world. Which of the following correctly describes a lesson learned from the given case?
A
The Orange County case emphasizes the importance of fully understanding complex derivative contracts before entering into them.
B
The London Whale case emphasizes the importance of recognizing that correlations can increase sharply during a global financial crisis.
C
The Northern Rock case emphasizes the importance of having a strong cybersecurity framework.
D
The LTCM case emphasizes the importance of meeting regulatory capital requirements.