Exam DISC-RM Practice Question 19
Study guide: Exam DISC-RM
A manufacturer's two divisions each plan to buy a currency hedge. One will receive about €5 million next year, and the other will pay about €5 million for components in the same month. The new chief risk officer cancels both hedges. Which of the forces behind the move to enterprise risk management does this decision reflect?
- A) External pressure from regulators and rating agencies
- B) Quantification through catastrophe and financial models
- C) A portfolio point of view of the firm's risks
- D) Boundaryless benchmarking of practices across industries
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