
Explanation:
A sound intraday risk structure for overseeing intraday liquidity is characterized by all the options listed. Active risk management involves the continuous monitoring and managing of risks. It is a proactive approach that seeks to identify potential risks before they materialize and take appropriate measures to mitigate them. Integration with risk governance refers to the alignment of the intraday risk structure with the overall risk governance framework of the organization. This ensures that the intraday risk structure is in sync with the organization's risk appetite, risk policies, and risk management strategies. Risk assessment is the process of identifying, analyzing, and evaluating risks. In the context of intraday liquidity risk, risk assessment involves the identification and evaluation of potential liquidity risks that could arise during the trading day. Therefore, all these elements—active risk management, integration with risk governance, and risk assessment—are essential components of a sound intraday risk structure.
Ultimate access to all questions.
No comments yet.
Q.3910 A sound intraday risk structure for overseeing intraday liquidity is of the utmost importance in risk management. Which of the following accurately states the characteristics of a sound intraday risk structure?
A
Active risk management
B
Integration with risk governance
C
Risk assessment
D
All of the above