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:

Suretyship

A contract between a creditor and a third party who agrees to pay another person’s debt.

Guaranty

A type of contract which ensures that a third party is secondarily liable for the debt to be paid; similar to a suretyship.

Liable

Being legally responsible for something, typically entailing a legal obligation to compensate for harm caused.

Artisan's Lien

A legal claim or right granted to craftsmen or repairers over the property they have serviced or improved, until payment is received.