Which of the following establishes organizational checks and balances with a proper segregation of front, back, and middle office functions for effective risk management?
Which of the following establishes organizational checks and balances with a proper segregation of front, back, and middle office functions for effective risk management?
Risk governance establishes organizational checks and balances with a proper segregation of front, back, and middle office functions for effective risk management. It involves the structure and processes that ensure the organization manages risks appropriately and includes the framework for risk management.
No risk categories in BABOK V3. There is only 2 : - Risk analysis and management - Risk identification
Answer: Risk Governance
BABOK v3 10.38.3.4 defines risk response as approach for dealing with a specific risk is selected. Here, the Organization tries to mitigate risk via organizational checks and balances with proper segregation of front, back and middle office functions. Hence, risk response is correct