Financial Risk Manager Part 1

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Explanation:

Data should be aggregated on a largely automated basis to reduce the risk of errors brought about by human input. However, human intervention is necessary when professional judgment is to be made.

Things to Remember

Accuracy and integrity are key principles in risk management to ensure that the data used for decision-making is reliable and trustworthy.
Having a single authoritative source of risk data helps in maintaining consistency and reducing the chances of conflicting information.
Automated aggregation of data is preferred to manual aggregation to minimize human errors and ensure efficiency.
Risk personnel should have direct access to data to perform necessary validations and checks to ensure data quality.
Controls for monitoring risk data should be robust to detect any anomalies or discrepancies in a timely manner.

Explanation:

Data should be aggregated on a largely automated basis to reduce the risk of errors brought about by human input. However, human intervention is necessary when professional judgment is to be made.

Things to Remember

Accuracy and integrity are key principles in risk management to ensure that the data used for decision-making is reliable and trustworthy.
Having a single authoritative source of risk data helps in maintaining consistency and reducing the chances of conflicting information.
Automated aggregation of data is preferred to manual aggregation to minimize human errors and ensure efficiency.
Risk personnel should have direct access to data to perform necessary validations and checks to ensure data quality.
Controls for monitoring risk data should be robust to detect any anomalies or discrepancies in a timely manner.

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Q.252 Which of the following goes against the principle of accuracy and integrity as set forth by the Basel Committee?

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KKoray Nedim

Last updated: June 10, 2026 at 23:59

It's most desirable to have a single authoritative source of risk data for each type of risk facing an organization.

Data should be aggregated manually at all times so as to minimize the probability of errors.

Risk personnel should have direct access to risk data so as to effectively refine, validate, reconcile, and process the data for use in reports.

Controls put in place to monitor risk data should be as robust as those used in financial accounting.