Ultimate access to all questions.
Explanation:
The correct answer is A.
A centralized risk management system is typically the responsibility of the fund's own risk manager or risk management team (often involving specialized third-party risk software), rather than the global custodian.
The global custodian plays a critical role in data aggregation and reporting. Their primary functions related to risk involve acting as a centralized data source by providing market data and maintaining information on positions (Choice C), and generating reports that offer a consolidated picture of the total exposure of the fund (Choice B). Many global custodians also offer value-added reporting services that include providing standard risk indicators based on historical data (Choice D). However, they do not provide the overarching centralized risk management system used by the asset manager to manage the portfolio's risk dynamically.
No comments yet.
Q.2502 All the following roles are performed by a global custodian, EXCEPT:
A
Providing centralized risk management system.
B
Generating a report that provides a consolidated picture of the total exposure of the fund.
C
Providing market data and maintaining information on positions.
D
Providing risk indicators based on historical data.