easy · FRM Part 2 Operational Risk
According to the 'accountability axiom' in institutional risk management, which of the following statements is ALWAYS false?
- 'The bank can outsource the activity but not the responsibility for the outcome.'
- 'Third-party providers can introduce systemic risks into the broader financial system over time.'
- 'Exit plans are necessary for all critical third-party relationships under sound governance.'
- 'By outsourcing a service to a regulated provider, the bank eliminates its operational risk.'
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