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GARP 2016-FRR Exam is recognized globally as a mark of excellence in risk management and regulation. Professionals who pass 2016-FRR exam are in high demand in the financial industry, and are often sought after by top-tier companies and institutions. Financial Risk and Regulation (FRR) Series certification provides a competitive advantage in a constantly evolving field and opens up new opportunities for career growth and advancement.

The FRR Series is an essential certification for professionals looking to enhance their knowledge in financial risk management and regulatory compliance. The series is globally recognized and provides candidates with the opportunity to advance their careers in the finance industry. With its rigorous curriculum and challenging exam format, the FRR Series is a valuable investment for any finance professional looking to stay ahead in their field.

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2016-FRR Exam Braindumps - 2016-FRR Test Review

If you want to success in your career as a GARP Certified Professional, you must think outside the box. It would be beneficial if you considered adding Financial Risk and Regulation (FRR) Series to your resume. To get this certification, you must pass the 2016-FRR exam conducted by GARP. Passing the Financial Risk and Regulation (FRR) Series exam will help you advance your career. It is not an easy task to pass the Financial Risk and Regulation (FRR) Series certification exam on the first attempt, but now Lead2PassExam is here to help. To assist you with remote study, Lead2PassExam provides GARP 2016-FRR Exam Questions to make your test preparation complete. The GARP 2016-FRR exam questions simulate the actual exam pattern, allowing you to pass the Financial Risk and Regulation (FRR) Series certification exam the first time.

The FRR series was first introduced in 2009 and has since become one of the most respected certifications in the financial industry. The series is designed to provide professionals with a comprehensive understanding of risk management practices and regulatory frameworks, as well as the tools and techniques needed to manage financial risk effectively. The FRR exams are recognized around the world and are highly valued by employers and financial institutions.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q232-Q237):

NEW QUESTION # 232
Which one of the following is a definition of spread risk?

A. The risk of a change in the value of collateral or the recoverability on the exposure
B. The risk of a change in the price of the credit without a change in the underlying credit rating
C. The risk of a change in the differences in loss estimates between structural and reduced form models
D. The risk of a downgrade in internal or external credit ratings

Answer: B

Explanation:
Comprehensive and Detailed In-Depth Explanation:
Spread risk refers to the risk of a change in an instrument's price due to fluctuations in its credit spread (the yield premium over a risk-free rate), without a change in its credit rating. This is a market risk factor, often affecting bonds or CDS, driven by market perceptions rather than rating agency actions. Option B relates to collateral risk, Option C to credit rating risk, and Option D to modeling discrepancies-none define spread risk. GARP's FRR and Basel III market risk rules support this definition.
Reference:GARP FRR Study Notes, Market Risk Section; BCBS, "Basel III: A Global Regulatory Framework," para. 689.

NEW QUESTION # 233
Which one of the four following activities is NOT a component of the daily VaR computing process?

A. Updating individual risk factor models.
B. Updating factor interrelationships.
C. Computing portfolio risk by delta-normal or delta-gamma method.
D. Producing the VaR report.

Answer: B

Explanation:
The daily VaR (Value at Risk) computing process typically involves several key steps, including updating individual risk factor models, computing portfolio risk (often using methods like delta-normal or delta-gamma), and producing the VaR report. Updating factor interrelationships, which involves recalibrating how different risk factors correlate or interact with each other, is not necessarily a daily requirement and is usually performed less frequently as part of broader risk model adjustments. Therefore, updating factor interrelationships is not a core component of the daily VaR computation process.

NEW QUESTION # 234
A credit analyst wants to determine a good pricing strategy to compensate for credit decisions that might have
been made incorrectly. When analyzing her credit portfolio, the analyst focuses on the spreads in each loan to
determine if they are sufficient to compensate the bank for all of the following costs and risks EXCEPT.

A. The opportunity cost of risk-adjusted marginal cost of capital.
B. The marginal cost of funds provided.
C. The overhead cost of maintaining the loan and the account.
D. The inherent risk of lending to this borrower while providing a return on the risk capital used to the
support the loan.

Answer: A

NEW QUESTION # 235
Which one of the four following statements about a minimal loss threshold in operational loss data collection is incorrect?

A. A company can have differing operational loss data collection and reporting thresholds for different departments.
B. The operational loss data collection program has to capture all losses regardless of their size.
C. The operational loss data collection program must include all material losses that are above minimal gross loss threshold.
D. Setting an operational loss data collection threshold depends on the risk appetite of the firm and regulatory requirements it needs to meet.

Answer: B

Explanation:
* Option A: A company can have differing operational loss data collection and reporting thresholds for different departments.
* Verified and correct. Different departments might have various risk exposures and thresholds based on their specific operational risk profiles.
* Option B: The operational loss data collection program has to capture all losses regardless of their size.
* Incorrect. A minimal loss threshold is usually set to avoid the administrative burden of capturing
* immaterial losses. Companies typically set thresholds based on risk appetite and regulatory requirements.
* Option C: Setting an operational loss data collection threshold depends on the risk appetite of the firm and regulatory requirements it needs to meet.
* Verified and correct. Thresholds are set based on the company's risk appetite and regulatory expectations to ensure effective and efficient loss data collection.
* Option D: The operational loss data collection program must include all material losses that are above the minimal gross loss threshold.
* Verified and correct. Only losses above the set threshold are required to be captured to maintain a focus on material risks.

NEW QUESTION # 236
Which one of the following financial instruments is subject to implied volatility price risk?

A. Options
B. Forwards
C. Swaps
D. Bonds

Answer: A

Explanation:
Comprehensive and Detailed In-Depth Explanation:
Implied volatility price risk arises from changes in the market's expectation of future volatility, directly affecting the pricing of options via models like Black-Scholes, where implied volatility is a key input. Options prices are highly sensitive to volatility shifts, unlike:
* Swaps:Sensitive to interest rate changes, not implied volatility.
* Bonds:Affected by yield changes, not volatility.
Reference:GARP FRR Study Notes, Market Risk Section; BCBS, "Basel III: A Global Regulatory Framework," para. 689-690.

NEW QUESTION # 237
......

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Detailed 2016-FRR Study Plan & 2016-FRR Exam Braindumps

2016-FRR Exam Braindumps - 2016-FRR Test Review

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q232-Q237):

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