hard · FRM Part 1 Foundations of Risk Management
An institution identifies that a trader in its Singapore satellite office has been recording unauthorized positions in a concealed 'error account'.
If the trader was permitted to both execute trades and perform the end-of-day reconciliation for those same accounts, which specific governance principle is most directly violated?
- The Use Test
- Risk capacity alignment
- Segregation of duties
- Multilateral netting
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