Financial Risk Manager Part 1
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A risk consultant is presenting to a group of bankers and investment managers about the importance of maintaining a strong and effective risk culture at a firm. The consultant begins by discussing some challenges to the establishment of a strong risk culture. Which of the following correctly describes a challenge to firms in ensuring a strong risk culture?
A
Risk culture typically develops at the local business unit level, making it harder for local teams to adopt a firm-wide risk culture.
B
Risk culture can only be assessed effectively during normal market conditions and not during times of stress due to market volatility.
C
Risk is typically expressed in a common manner throughout an organization, making it more difficult to identify concentrations of risk.
D
A strong risk culture requires that the board of directors performs day-to-day risk management activities, but boards typically take an advisory role.