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CTP · Question #664

(Topic 7) A trader of ABC Bank executed and audited his own trades. Assigning these two functions to the same person introduced which one of the following risks to the bank?

The correct answer is A. Operational risk. See the full explanation below for the reasoning.

Question

  • (Topic 7)

A trader of ABC Bank executed and audited his own trades. Assigning these two functions to the same person introduced which one of the following risks to the bank?

Options

  • AOperational risk
  • BCurrency risk
  • CDerivatives risk
  • DRegulatory risk

How the community answered

(27 responses)
  • A
    74% (20)
  • B
    15% (4)
  • C
    4% (1)
  • D
    7% (2)

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