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Part I
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Foundations of Risk Management
Foundations of Risk Management
Medium
Which of the following best exemplifies a failure of the 'effective challenge' pillar of risk culture?
A
A junior risk analyst identifies a model flaw but does not escalate it because her manager previously dismissed similar concerns
B
A bank's compensation structure pays traders based solely on revenue without risk adjustments
C
The CEO publicly states that risk management is everyone's responsibility but the risk budget is cut by 20%
D
The internal audit team reports to the CFO rather than the audit committee of the board
Select an answer to continue
Tags
#risk-culture
#effective-challenge
#escalation
#fsb-pillars
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