Foundations of Risk Management for FRM Part I Questions with Complete Solutions 100%
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Artificial Intelligence in Risk Using AI to enhance risk analysis capabilities.
Counterparty Risk Risk of loss from a counterparty's default.
Herstatt Risk Specific type of settlement risk in derivatives.
Recovery Value Amount a counterparty can pay after default.
Recovery Rate Percentage of recovery value after default.
Funding Liquidity Risk Inability to pay or refinance debt.
Market Liquidity Risk Inability to find a counterparty for transactions.
Operational Risk Losses from inadequate internal processes or events.
Technology Risk Losses due to inadequate computer systems.
Legal Risk Potential for litigation creating uncertainty.
Regulatory Risk Uncertainty from changes in government regulations.
Business Risk Variability in revenues or cost structures.
, Strategic Risk Long-term risks from fundamental business decisions.
Concentration Risk Exposure to a few large loans or investments.
Risk Factor Interactions Correlation between independent risk factors.
Unexpected Losses Losses that exceed expected risk levels.
Internal Controls Systems to prevent operational failures.
Capital Withdrawals Withdrawals that can strain liquidity.
Natural Disasters External events causing operational disruptions.
Cyber Security Risks Threats to data integrity and confidentiality.
Rogue Traders Traders engaging in unauthorized trading activities.
Legal and Regulatory Risk Threat from litigation or unfavorable government actions.
Expected Shortfall Estimates magnitude of tail risk losses.
Risk-Adjusted Return on Capital (RAROC) Reward per unit of risk adjusted for expected
losses.
Option Greeks Metrics (delta, gamma, theta, vega) for modeling risk.
Verified| Latest Update Graded A+
Artificial Intelligence in Risk Using AI to enhance risk analysis capabilities.
Counterparty Risk Risk of loss from a counterparty's default.
Herstatt Risk Specific type of settlement risk in derivatives.
Recovery Value Amount a counterparty can pay after default.
Recovery Rate Percentage of recovery value after default.
Funding Liquidity Risk Inability to pay or refinance debt.
Market Liquidity Risk Inability to find a counterparty for transactions.
Operational Risk Losses from inadequate internal processes or events.
Technology Risk Losses due to inadequate computer systems.
Legal Risk Potential for litigation creating uncertainty.
Regulatory Risk Uncertainty from changes in government regulations.
Business Risk Variability in revenues or cost structures.
, Strategic Risk Long-term risks from fundamental business decisions.
Concentration Risk Exposure to a few large loans or investments.
Risk Factor Interactions Correlation between independent risk factors.
Unexpected Losses Losses that exceed expected risk levels.
Internal Controls Systems to prevent operational failures.
Capital Withdrawals Withdrawals that can strain liquidity.
Natural Disasters External events causing operational disruptions.
Cyber Security Risks Threats to data integrity and confidentiality.
Rogue Traders Traders engaging in unauthorized trading activities.
Legal and Regulatory Risk Threat from litigation or unfavorable government actions.
Expected Shortfall Estimates magnitude of tail risk losses.
Risk-Adjusted Return on Capital (RAROC) Reward per unit of risk adjusted for expected
losses.
Option Greeks Metrics (delta, gamma, theta, vega) for modeling risk.
