ETS FINAL EXAM QUESTIONS WITH VERIFIED ANSWERS PASSED

ETS FINAL EXAM QUESTIONS WITH
VERIFIED ANSWERS PASSED

Know the different types of Risks and their properties. - ANS ✔✔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 - ANS ✔✔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

• Online Trading (Black Book)

• Scheduling and Storage

• Mistakes and Omissions



Financial Risk - ANS ✔✔Risk of financial exposure due to market fluctuation



• Protecting against rising or falling charges

, • Locking in margins

• Mark to Market daily tracking



Credit Risk - ANS ✔✔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)



Other Risk - ANS ✔✔• Technical

• Security

• Data

• Environmental



1. Know what the purpose and approach of Mark-to-Market is. - ANS ✔✔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.