ETS Final Exam questions with
complete solutions already passed
types of risks - ANS ✔operational, financial, credit, other (technical, security, data,
environmental)
operational risk - ANS ✔involves risk of mistakes or fraud resulting in financial exposure
field operations (accidents) - ANS ✔traders, transaction confirmations, online trading
supply chain operations - ANS ✔traders, transaction confirmations, online trading, scheduling
and storage, mistakes and omission
financial risk definition - ANS ✔financial exposure due to market fluctuation
financial risk examples - ANS ✔protecting against or falling charges, locking in margins, mark to
market daily tracking
credit risk definition - ANS ✔risk of non-performance of financial commitments
credit risk examples - ANS ✔credit limits (receivable), liquidity limits (payable), mark to market,
accts payable and receivable, complete picture
purpose and approach of Mark-to-Market is - ANS ✔Measure the current value of the assets
rather than just recording historical values
, properties of the Middle office - ANS ✔Properties are CONTROLS and COMPLIANCE which
includes roles such as
Auditors' Role
Management's Role
Technology's Role
Government's Role
why the middle office sector is vital - ANS ✔In recent years the Middle Office of the Natural Gas
(Energy) Industry has become one of the fastest growing sectors in our industry. As our Industry
becomes more fast paced and risk averse, the role of the Middle Office becomes more and
more vital.
what the roles of Auditors are. - ANS ✔Controls designed to protect the company from harm
are in place, When issues are identified, new safeguards are put in place, Auditors need to
involve Management on a timely basis, GAAP
different types of audits - ANS ✔Internal
External
Jurisdictional
Governmental
Management's role as it relates to the middle office - ANS ✔Management must ensure that:
-Controls are constantly monitored and enforced
-Staff is aware of Controls and their importance through
Staff Meetings,
Directives,
Participation,
-Management must be open and transparent
complete solutions already passed
types of risks - ANS ✔operational, financial, credit, other (technical, security, data,
environmental)
operational risk - ANS ✔involves risk of mistakes or fraud resulting in financial exposure
field operations (accidents) - ANS ✔traders, transaction confirmations, online trading
supply chain operations - ANS ✔traders, transaction confirmations, online trading, scheduling
and storage, mistakes and omission
financial risk definition - ANS ✔financial exposure due to market fluctuation
financial risk examples - ANS ✔protecting against or falling charges, locking in margins, mark to
market daily tracking
credit risk definition - ANS ✔risk of non-performance of financial commitments
credit risk examples - ANS ✔credit limits (receivable), liquidity limits (payable), mark to market,
accts payable and receivable, complete picture
purpose and approach of Mark-to-Market is - ANS ✔Measure the current value of the assets
rather than just recording historical values
, properties of the Middle office - ANS ✔Properties are CONTROLS and COMPLIANCE which
includes roles such as
Auditors' Role
Management's Role
Technology's Role
Government's Role
why the middle office sector is vital - ANS ✔In recent years the Middle Office of the Natural Gas
(Energy) Industry has become one of the fastest growing sectors in our industry. As our Industry
becomes more fast paced and risk averse, the role of the Middle Office becomes more and
more vital.
what the roles of Auditors are. - ANS ✔Controls designed to protect the company from harm
are in place, When issues are identified, new safeguards are put in place, Auditors need to
involve Management on a timely basis, GAAP
different types of audits - ANS ✔Internal
External
Jurisdictional
Governmental
Management's role as it relates to the middle office - ANS ✔Management must ensure that:
-Controls are constantly monitored and enforced
-Staff is aware of Controls and their importance through
Staff Meetings,
Directives,
Participation,
-Management must be open and transparent
