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IIA Exam IIA-CFSA Topic 3 Question 29 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 29
Topic #: 3

[All IIA-CFSA Questions]

Asset/Liability (ALM) is a short and long term planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve spread. A sound ALM policy must manage following types of risks EXCEPT:

ACredit Risk

BControl Risk

CLiquidity Risk

DCapital Risk

Show Suggested Answer

Suggested Answer: D

by Nelida at Feb 08, 2023, 12:59 AM

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Genevive

6 days ago

D) Capital Risk seems like the odd one out here. ALM is all about managing the balance sheet, so capital risk should be a key consideration.

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Quentin

7 days ago

Hmm, I'm not sure about this one. I'll have to review my ALM notes again.

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Allene

13 days ago

Hmm, I see your point. Capital risk does seem like a key risk to manage in ALM.

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Brice

14 days ago

I disagree, I believe the answer is D) Capital Risk.

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Lura

15 days ago

I think the answer is B) Control Risk. ALM is focused on managing financial risks, not operational risks like control risk.

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Allene

26 days ago

I think the answer is B) Control Risk.

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