ARM 54 - Chapter 11 Exam with complete
solutions 2024
3 yBroad yCategories yof yRisks ythat ythe yBoard yMust yOversee y- yANSWER✓✓-1.
yStrategic yRisks ythat yarise yout yof ytrends yin ythe yECONOMY yand ySOCIETY.
2. yOperational yRisks ythat yarise yfrom ypeople, yprocesses, ysystems, yand/or
ycontrols.
3. yFinancial yRisks ythat yarise yfrom ythe yeffects yof ymarket yforces yon yfinancial
yassets yand yliabilities.
4 yRecent yLaws y& yRegulations yAddressing yBoard yOversight yof yRisk
yManagement y- yANSWER✓✓-1. yDodd-Frank yAct: ysets yrequirements yfor yrisk
ycommittees yat ybank yholding ycompanies yand ycertain ynonbank yfinancial
yholding ycompanies yand yimposes yspecific yrules yfor yrisk yoversight yand
yreporting.
2. ySEC yRule y33-9089: yrequires ythat ypublicly-traded ycompanies ydisclose
yboard yrisk yoversight yactivities.
3. y2010 yUpdate yto ythe yUK yCorporate yGovernance yCode: yadds ya yspecific yrisk
ymgmt. yprinciple ymaking ythe yboard yresponsible yfor ydefining yrisks ythe yfirm
ywill yundertake yand ymaintaining ysound yrisk ymgmt. yand yinternal ycontrol
ysystems.
4. yEuropean yUnion's yEuropean ySystemic yRisk yBoard: ycreated yin y2010 yto
ymonitor yand yassess ysystemic yrisk.
4 yCommon yPrinciples yFollowed yby yRisk yCommittees y- yANSWER✓✓-1.
yEnsure ythat ya yrisk ymanagement yprocess yexists yat yall ylevels yof ythe yfirm yand
ythat ythe yprocess yis yfollowed.
2. yIdentify yand yquatify yrisks ywithin ythe yfirm.
3. yDefine ythe yfirm's yrisk yappetite yand ytolerance. y
4. yPrioritize ythe yselection yof yrisks yto ydetermine ywhich yrisks yto yretain yand
ywhich yto yreduce, yeliminate, yor ytransfer.
solutions 2024
3 yBroad yCategories yof yRisks ythat ythe yBoard yMust yOversee y- yANSWER✓✓-1.
yStrategic yRisks ythat yarise yout yof ytrends yin ythe yECONOMY yand ySOCIETY.
2. yOperational yRisks ythat yarise yfrom ypeople, yprocesses, ysystems, yand/or
ycontrols.
3. yFinancial yRisks ythat yarise yfrom ythe yeffects yof ymarket yforces yon yfinancial
yassets yand yliabilities.
4 yRecent yLaws y& yRegulations yAddressing yBoard yOversight yof yRisk
yManagement y- yANSWER✓✓-1. yDodd-Frank yAct: ysets yrequirements yfor yrisk
ycommittees yat ybank yholding ycompanies yand ycertain ynonbank yfinancial
yholding ycompanies yand yimposes yspecific yrules yfor yrisk yoversight yand
yreporting.
2. ySEC yRule y33-9089: yrequires ythat ypublicly-traded ycompanies ydisclose
yboard yrisk yoversight yactivities.
3. y2010 yUpdate yto ythe yUK yCorporate yGovernance yCode: yadds ya yspecific yrisk
ymgmt. yprinciple ymaking ythe yboard yresponsible yfor ydefining yrisks ythe yfirm
ywill yundertake yand ymaintaining ysound yrisk ymgmt. yand yinternal ycontrol
ysystems.
4. yEuropean yUnion's yEuropean ySystemic yRisk yBoard: ycreated yin y2010 yto
ymonitor yand yassess ysystemic yrisk.
4 yCommon yPrinciples yFollowed yby yRisk yCommittees y- yANSWER✓✓-1.
yEnsure ythat ya yrisk ymanagement yprocess yexists yat yall ylevels yof ythe yfirm yand
ythat ythe yprocess yis yfollowed.
2. yIdentify yand yquatify yrisks ywithin ythe yfirm.
3. yDefine ythe yfirm's yrisk yappetite yand ytolerance. y
4. yPrioritize ythe yselection yof yrisks yto ydetermine ywhich yrisks yto yretain yand
ywhich yto yreduce, yeliminate, yor ytransfer.
