PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Question # 11 Topic 2 Discussion

PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Question # 11 Topic 2 Discussion

8008 Exam Topic 2 Question 11 Discussion:
Question #: 11
Topic #: 2

Which of the following risks were not covered in detail in most stress tests prior to the current crisis:

I. The behavior of complex structured products under stressed liquidity conditions

II. Pipeline or securitization risk

III. Basis risk in relation to hedging strategies

IV. Counterparty credit risk

V. Contingent risks

VI. Funding liquidity risk


A.

I, IV and VI


B.

I, II, III, IV and VI


C.

II, III and V


D.

All of the above


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