Donna Grinstead is the risk management
officer at Republic Bank. She is
establishing governance principles for
effective risk data aggregation. The bank has
historically been lenient with respect
to risk management processes, and Grinstead
has been hired to remedy the situation.
Which of the following statements regarding
governance principles is false?
AThe overall risk management framework of the bank should include risk data aggregation.
BHuman and financial resources should be devoted to risk data aggregation, and thus senior management should approve the framework.
CA bank should have multiple sources for risk data for each type of risk to improve reliability.
DRisk data aggregation should be considered when the firm undergoes new initiatives, including acquisitions and divestitures.
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