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LOS a: Compare and contrast the main features of the risk management process, risk governance, risk reduction, and an enterprise risk management system.
Q1. Risk management has evolved into:
A) a series of small sets of independent activities.
B) a government mandated set of standards.
C) a broad set of interrelated activities.
Q2. Each of the following is a step in the risk management process EXCEPT:
A) setting a target level of risk.
B) identifying the current level of risk.
C) filing taxes.
Q3. The final step in the implementation phase of the risk management process is to:
A) conduct a Monte Carlo simulation.
B) determine the optimal time to wait for addressing risk again.
C) identify and price the appropriate tools for achieving the objectives.
Q4. Yoshi Chu and Ryan Dobson have been tasked with creating an enterprise-wide risk management (ERM) system for Reliant Financial Services. After creating a centralized data warehousing facility, their next step is creating a useful analytics system. Which of the following features would be least likely included in their system?
A) Legal risk analysis.
B) Derivative valuation models.
C) Monte Carlo simulations.
Q5. Risk management is best addressed:
A) monthly.
B) daily.
C) quarterly.
Q6. One goal of all risk management systems should be to:
A) make the risk level equal to the prevailing level in the market.
B) bring the level of risk to a desired level of risk, which may exceed zero.
C) eliminate all risk, i.e., reduce risk to zero.
Q7. Which of the following is the most difficult step in establishing an enterprise-wide risk management (ERM) system for a large firm?
A) Creating a centralized data warehousing system.
B) Establishing a monitoring and evaluation system.
C) Developing an analytics system.
Q8. Which of the following operations applies to the monitoring and evaluation systems of an enterprise-wide risk management (ERM) system?
A) Performing diagnostics on the pricing, value at risk (VAR) computations, and data quality.
B) Computing stress testing to complement traditional value at risk (VAR) based risk measures.
C) Computing value at risk (VAR) metrics for all risks across the firm.
Q9. Which of the following is the final step in the risk management process?
A) Identifying and measuring specific risk exposures.
B) Monitoring the process and taking any necessary corrective actions.
C) Reporting risk exposures (deemed appropriate) to stakeholders. | 
发表于 2009-4-7 09:21
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