Free 2016-FRR Exam Questions - GARP 2016-FRR Exam

BetaFin, a financial services firm, does not have retail branches, but has fixed income, equity, and asset management divisions. Which one of the four following risk and control self-assessment (RCSA) methods fits the firm's operational risk framework the best?

Which one of the following is an advantage of using a daily decay factor when forecasting tomorrow's P&L?

If a bank is long 500 million pounds, short 300 million in delta-equivalent pound options, and long 100 million in pound-denominated stocks, what is the amount of pound exposure that would be shown in the aggregated risk reports?

Under the Standardized Approach in the Basel II Accord, what is the risk weight of a non-performing corporate loan?

Using a forward transaction, Omega Bank buys 100 metric tones of aluminum for delivery in six-months' time. However, after two months, the bank becomes concerned with the potential fluctuations in aluminum prices and wants to hedge its potential exposure against a possible decline in aluminum prices. Which one of the following four strategies could the bank use to offset the risk from its current exposure to aluminum as it sets the price for selling the commodity in four-months' time?