What Type of Risk Would Describe the Failure of a Back

question 5

Multiple Choice

What type of risk would describe the failure of a back office to make adequate margin calls on repo positions?

• A) Credit risk
• B) Market risk
• C) Operational risk
• D) Settlement risk

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Definitions:

Management Accountants

Professionals who prepare financial information for internal use by the management, aiding in decision-making processes.

Shareholder Relations

The management of interactions and communications between a corporation and its shareholders.

Managerial Accounting

Identifying, measuring, evaluating, and reporting financial details to managers to assist in attaining organizational aims.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.