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NEW QUESTION: 1
Two of the most important things to know when planning a speech or lecture are the ______________and______________ of your audience.
A. Motivation, professionalism
B. Culture, understanding
C. Background, attitude
D. Political preference, sense of humor
Answer: B
NEW QUESTION: 2
A risk practitioner has observed that risk owners have approved a high number of exceptions to the information security policy. Which of the following should be the risk practitioner's GREATEST concern?
A. Vulnerabilities are not being mitigated
B. Aggregate risk is approaching the tolerance threshold
C. Controls are not operating efficiently.
D. Security policies are being reviewed infrequently.
Answer: B
NEW QUESTION: 3
ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use to finance their own lending. Individually, each of the mortgage companies has an exposure at default (EAD) of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were modeled as independent risks, what would be the probability of a cumulative $40 million loss from
these two mortgage borrowers?
A. 0.01%
B. 10%
C. 0.1%
D. 1%
Answer: D
NEW QUESTION: 4
A common first step in ratio analysis of financial statements is to prepare what are sometimes called
____________________. On these statements, each line item is expressed as a percentage of the total.
For example, on the balance sheet, each line is shown as a percentage of total assets.
A. Short-term analysis
B. Status diagnosis analysis
C. Common-size statements
D. Pre-analysis statements
Answer: C