IIA Exam IIA-CFSA Topic 4 Question 63 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 63
Topic #: 4

Adequate procedures and controls associated with swap transactions should exist to help minimize the risks inherent in transaction process. Example/s of these controls may include:

AA daily reconciliation of traders' positions should be performed

BTo minimize market risk in hedge transactions:
There should be independent sign-off procedures for hedging models
All hedge strategies should be clearly defined
All software and products should be secure and temper resistant

CAll transactions should be authorized and affirmed

DAll of these

Show Suggested Answer

Suggested Answer: D

by Nelida at Sep 17, 2024, 07:48 PM

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Laurel

2 months ago

Option D for the win! Can't leave any stone unturned when it comes to managing risks in the swap market.

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Jade

2 months ago

Haha, I bet the traders wish all their software was 'temper resistant' so they could take a swing at it on a bad day!

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Twana

2 months ago

I agree with D. Swap transactions involve a lot of risk, so having a comprehensive set of controls is essential.

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Leonora

9 days ago

User 4: Definitely, having all of these controls in place can help minimize risks in swap transactions.

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Kenneth

12 days ago

User 3: Daily reconciliation of traders' positions is also crucial.

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Sonia

26 days ago

User 2: I agree, that's an important control to have in place.

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Suzan

1 months ago

User 1: I think all transactions should be authorized and affirmed.

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Rosina

2 months ago

Definitely D. Proper controls like daily position reconciliation, independent sign-off on hedging models, and authorization of all transactions are crucial.

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Francisca

1 months ago

It's important to have a comprehensive set of procedures and controls to ensure the integrity of swap transactions.

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Virgilio

1 months ago

I agree, having all of these controls in place can help minimize risks associated with swap transactions.

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Oliva

1 months ago

Definitely D. Proper controls like daily position reconciliation, independent sign-off on hedging models, and authorization of all transactions are crucial.

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