Page |1
ETS FINAL EXAM Questions and Answers with
Solutions UPDATED!!!!
Know the different types of Risks and their properties. -
ANSWER Operational risk- mistakes, fraud results in financial
exposure
Financial Risk - risk of financial exposure due to market
fluctuation.
Credit risk- emron? Failed back in 2000s.
Other risks - big risk in today world.
Operational risk - ANSWER mistakes, fraud results in financial
exposure
• Field Operations (Accidents)
• Traders (Relationships Risk)
• Transaction Confirmations
• Online Trading (Black Book)
• Supply Chain Operations
• Traders (Relationships Risk)
• Transaction Confirmations
, Page |2
• Online Trading (Black Book)
• Scheduling and Storage
• Mistakes and Omissions
Financial Risk - ANSWER Risk of financial exposure due to
market fluctuation
• Protecting against rising or falling charges
• Locking in margins
• Mark to Market daily tracking
Credit Risk - ANSWER Risk of non-performance of financial
commitments.
• Credit Limits (Receivable)
• Liquidity Limits (Payable)
• Mark to Market (MtM Report)
• Accts Payable and Receivable
• Hedge Trades
• (Complete Picture)
, Page |3
Other Risk - ANSWER • Technical
• Security
• Data
• Environmental
1. Know what the purpose and approach of Mark-to-Market is. -
ANSWER Mark to Market Reporting - calculated view for future,
3rd financial, past, today and future.
Look at customers credit
Look at vendor credit
Consider how you own them and how much they owe you.
Accts payable and receivable
Hedge trades- guarantee the amount that you owe.
Complete picture: potential of what is owed.
Know the properties of the Middle office and why the sector is
vital. - ANSWER In recent years the Middle Office of the Natural
Gas (Energy) Industry has become one of the fastest growing
ETS FINAL EXAM Questions and Answers with
Solutions UPDATED!!!!
Know the different types of Risks and their properties. -
ANSWER Operational risk- mistakes, fraud results in financial
exposure
Financial Risk - risk of financial exposure due to market
fluctuation.
Credit risk- emron? Failed back in 2000s.
Other risks - big risk in today world.
Operational risk - ANSWER mistakes, fraud results in financial
exposure
• Field Operations (Accidents)
• Traders (Relationships Risk)
• Transaction Confirmations
• Online Trading (Black Book)
• Supply Chain Operations
• Traders (Relationships Risk)
• Transaction Confirmations
, Page |2
• Online Trading (Black Book)
• Scheduling and Storage
• Mistakes and Omissions
Financial Risk - ANSWER Risk of financial exposure due to
market fluctuation
• Protecting against rising or falling charges
• Locking in margins
• Mark to Market daily tracking
Credit Risk - ANSWER Risk of non-performance of financial
commitments.
• Credit Limits (Receivable)
• Liquidity Limits (Payable)
• Mark to Market (MtM Report)
• Accts Payable and Receivable
• Hedge Trades
• (Complete Picture)
, Page |3
Other Risk - ANSWER • Technical
• Security
• Data
• Environmental
1. Know what the purpose and approach of Mark-to-Market is. -
ANSWER Mark to Market Reporting - calculated view for future,
3rd financial, past, today and future.
Look at customers credit
Look at vendor credit
Consider how you own them and how much they owe you.
Accts payable and receivable
Hedge trades- guarantee the amount that you owe.
Complete picture: potential of what is owed.
Know the properties of the Middle office and why the sector is
vital. - ANSWER In recent years the Middle Office of the Natural
Gas (Energy) Industry has become one of the fastest growing
