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NEW QUESTION: 1
A financial institution is considering shedding a business unit to reduce its economic capital requirements.
Which of the following is an appropriate measure of the resulting reduction in capital requirements?
A. Proportionate capital for the business unit in consideration
B. Marginal capital for the business unit in consideration
C. Incremental capital for the business unit in consideration
D. Percentage of total gross income contributed by the business unit in question
Answer: C
Explanation:
Explanation
Incremental capital (or incremental VaR, depending upon the context), is a measure of the change in the capital (or VaR) requirements if a certain change is made to a portfolio. It uses the 'before' and 'after' approach, ie find out what the capital requirement or VaR will be without the change, and what it will be after the change. The difference is the incremental capital or incremental VaR. It helps measure the change in risk as a result of a particular action, eg a change in a position.
Marginal capital or VaR on the other hand is a method to break down the capital requirement or the VaR so that it can be assigned to individual positions within the portfolio. The total of marginal capital or marginal VaR for all the positions in a portfolio adds up to the total capital requirements or total VaR. Note that marginal VaR is also called component VaR.
Therefore incremental capital is the correct answer to this question. The other choices are incorrect. In the exam, the question may be phrased differently, so try to keep in mind the different between incremental and marginal capital, which can be a bit confusing given what these terms mean in plain English.

NEW QUESTION: 2
You are designing a recovery strategy for your Azure SQL Databases.
The recovery strategy must use default automated backup settings. The solution must include a Point-in time restore recovery strategy.
You need to recommend which backups to use and the order in which to restore backups.
What should you recommend? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation

All Basic, Standard, and Premium databases are protected by automatic backups. Full backups are taken every week, differential backups every day, and log backups every 5 minutes.
References:
https://azure.microsoft.com/sv-se/blog/azure-sql-database-point-in-time-restore/

NEW QUESTION: 3
An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?
A. Engaging an external industry associate that performed a similar review for a supplier of the organization.
B. Selecting a team from an independent entity that previously employed the chief audit executive of the organization.
C. Using a team under the direction of the organization's chief audit executive, and obtaining validation from a former manager of the internal audit activity.
D. Using the same external service provider because of its competency and experience with the organization.
Answer: A