Risk Managers Should Report to

question 2

Multiple Choice

Risk managers should report to

• A)the chief trader
• B)legal counsel
• C)the executive in charge of the front office
• D)the executive in charge of the back office
• E)none of the above

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or production volume.

Mud Statues

Sculptures made out of mud or clay, often used in various cultures for artistic or ceremonial purposes.

Workers

Individuals engaged in any form of economic activity to earn a living, including both paid and unpaid efforts.

Diseconomies of Scale

The phenomenon where, as a firm or industry grows beyond a certain point, per unit costs start increasing due to inefficiencies.