Topic 4 What is ERM.pdf

Integration of risk transfer integration of business

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the following motivations are most likely associated with the benefit of improved business performance? Integration of risk transfer. Integration of business processes. Integration of portfolio management. Integration of risk organization. The chief risk officer (CRO) generally reports to the CEO but could also have a dotted line relationship to both the CEO and to the board of directors in order to minimize any potential friction between the CRO and the CEO due to: basis risk hedging. I. regulatory issues. II. Both I and II. Neither I nor II. I only. II only.
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Question #4 of 5 Question ID: 495066 A) B) C) D) Question #5 of 5 Question ID: 495068 A) B) C) D) Bank XYZ's senior management and its board of directors currently receive fragmented risk management information from various functional units. Given the shortcomings of this approach, the chief risk officer (CRO) suggests a more centralized risk management system. Which of the following statements is correct regarding the implementation of an enterprise risk management (ERM) program? ERM is crucial in establishing a firm-wide, integrated set of policies, procedures, and standards. I. ERM is often defined as a process or activity to manage risks. II. I only. II only. Both I and II. Neither I nor II. The chief risk officer (CRO) is responsible for all risks facing a company, and is specifically responsible for developing and implementing an enterprise risk management (ERM) strategy. Which of the following statements is correct regarding the role and responsibilities of the CRO? The CRO typically reports to the heads of credit, market, operational, and insurance risks. The CRO develops a framework of management policies, including setting the overall risk appetite of the firm. The creation of the CRO role is the only solution to establishing risk oversight. The CRO is a mid-level management responsible for assisting with ERM.
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  • Fall '18
  • implementation of an enterprise risk management

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