hard · FRM Part 1

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?

  1. The Use Test
  2. Risk capacity alignment
  3. Segregation of duties
  4. Multilateral netting

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