Free GARP FRM-Part-2 Exam Questions

Which of the following statements describes the best approach for liquidity transfer pricing?

In the context of a potential nonmalicious data leakage incident by a bank employee, the following information is provided:There is a 99% chance that bank employees will receive a phishing email through their work email.There is a 95% chance that the bank’s firewalls will operate as intended.There is a 90% chance that the employee will know to immediately delete the phishing email.There is a 3% chance that the detective controls of suspicious network activity will fail.There is a 1% chance that there will be an exit of the leaked information.Using fault tree analysis (FTA) and assuming that the conditions just listed are fully independent, the likelihood of the risk of data leakage materializing for a given time period is closest to:

Which of the following methods is not one of the three approaches for mapping a portfolio of fixed-income securities onto risk factors?

The CRO at a bank wants to strengthen the bank’s capability to defend itself against emerging cyber-threats. To help achieve this goal, the CRO is assessing the current range of practices regarding the sharing of cybersecurity information between different types of institutions, as well as the potential benefits from sharing information. Which of the following statements would be most appropriate for the CRO to make?

An investment bank has a one-way credit support annex (CSA) on a bilateraltransaction with a hedge fund counterparty. Under the terms of the CSA, the markto-market value of the transaction forms the basis of the hedge fund’s collateralrequirements, which are provided below:Value (CNY)Mark-to-market value of net exposure 25,000,000Mark-to-market value of collateral posted 10,800,000Threshold amount 14,000,000Minimum transfer amount 2,500,000Rounding amount 10,000Assuming the net exposure increases to CNY 27,000,000 and the mark-to-marketvalue of collateral posted has not changed, how much additional collateral will the hedge fund have to post?