Effective Risk Management Requires That the Front Office Clerical Operations

question 8

True/False

Effective risk management requires that the front office clerical operations be separated from the back office trading operations.

Understand the concept of privity of contract and its implications for third parties.

Grasp the legal doctrine of the parol evidence rule and its exceptions.

Recognize the significance and outcomes of statutory vs. equitable assignments.

Comprehend the concepts of novation, rectification, and agency as exceptions or specific scenarios within contract law.

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Definitions:

Deontological Theory

A moral philosophy that emphasizes the importance of adherence to a set of duties or rules, suggesting that the morality of an action is primarily determined by its adherence to these rules, rather than by its consequences.

Kantianism

Kantianism is a philosophical doctrine based on the works of Immanuel Kant, emphasizing the principles of universal morality, duty, and the importance of intention behind actions.

Rights Theory

A framework in ethics and philosophy that holds certain rights as fundamentally important to human beings, which must be respected and protected.

Deontological Theory

An ethical framework that judges the morality of an action based on the action's adherence to rules or duties, rather than the consequences of the action.