Free Practice GARP 2016-FRR Exam Questions 2025

Stay ahead with 100% Free Financial Risk and Regulation (FRR) Series 2016-FRR Dumps Practice Questions

Page: 1 / 78

Total 390 Questions | Updated On: Jun 03, 2025

Add To Cart

Question 1

Which one of the following four statements regarding the analysis of recoveries in operational risk reporting is correct?

A : Recoveries are usually driven by automated processes

B : Recovery analysts cannot be used to improve the recovery rate

C : Recovery analysis can demonstrate the importance of the operational risk function

D : The experience of personnel within the recovery team has no effect on the recovery rate

Answer: C

Question 2

What is a common implicit assumption that is made when computing VaR using parametric

methods?

A : The expected returns are constant, but the standard deviation changes over time.

B : The standard deviations of returns are constant, but the mean changes over time.

C : The mean of and the standard deviations of returns are both constant.

D : The mean and standard deviation of returns change periodically in response to crises.

Answer: C

Question 3

Which one of the following four statements regarding the analysis of recoveries in operational risk reporting is correct?

A : Recoveries are usually driven by automated processes

B : Recovery analysts cannot be used to improve the recovery rate

C : Recovery analysis can demonstrate the importance of the operational risk function

D : The experience of personnel within the recovery team has no effect on the recovery rate

Answer: C

Question 4

PV01 is a method of describing interest rate risk. Which one of the following is a specific weakness of PV01?

A : PV01 overestimates convexity risk

B : PV01 is not very good at describing value change due to large changes in interest rates

C : PV01 underestimates the effect of small changes in interest rates

D : PV01 requires a large number of calculations to produce a reasonable estimate of the effect of interest rate changes

Answer: B

Question 5

Which one of the following four statements regarding the analysis of recoveries in operational risk reporting is correct?

A : Recoveries are usually driven by automated processes

B : Recovery analysts cannot be used to improve the recovery rate

C : Recovery analysis can demonstrate the importance of the operational risk function

D : The experience of personnel within the recovery team has no effect on the recovery rate

Answer: C

Page: 1 / 78

Total 390 Questions | Updated On: Jun 03, 2025

Add To Cart