GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 41 Topic 5 Discussion

GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 41 Topic 5 Discussion

2016-FRR Exam Topic 5 Question 41 Discussion:
Question #: 41
Topic #: 5

To ensure good risk management which of the following should be true about the CRO role and function?


A.

The CRO should receive compensation that is directly determined by the profit of the trading desk.


B.

The CRO should report to the CEO or the Board of Directors.


C.

The CRO should not be involved with the setting of risk limits.


D.

To ensure efficient flow of information the CRO should not be independent of business units.


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