Exam Feedback May 2017 Part 2 Exam Feedback

KA1991

Member
Could you show me the calculation?
is it Amount - Threshold-minimum ?
Sure - Exposure was 4,700,000 Threshold was 4,000,000 and MTA 300,000
Therefore 4700000-4000000=700000 (Note - threshold is uncollateralized exposure and MTA was 300,000, that triggered the outflow)
 

cj9101

Member
Sure - Exposure was 4,700,000 Threshold was 4,000,000 and MTA 300,000
Therefore 4700000-4000000=700000 (Note - threshold is uncollateralized exposure and MTA was 300,000, that triggered the outflow)
Thank you looks like I got it right. Thank you. What about Vasicek model?
 

KA1991

Member
Oh I see I thought it should be amount. maybe I am wrong. Thank you.
No - even I'm not clear it was just an assumption, considering threshold is already an amount - so the number of exception would be key. I could be wrong as well.
 

cj9101

Member
No - even I'm not clear it was just an assumption, considering threshold is already an amount - so the number of exception would be key. I could be wrong as well.
Do you know what is the answer for Credit VaR with recovery rate 2%?
 

vistag

Member
Yes, first one I went with 'D' that said transfer of operational risk to customer with use of wallets
.

Wallets is a tool for making things easy for the end customer in managing bitcoins and it doesn't decrease operational risk for the bank(the question was why would bank be incentivised to use bitcoin) as far as i remember it is about some decentralization benefits,cdnt recollect the answer or options. Secondly i might be completely wrong
 

KA1991

Member
Wallets is a tool for making things easy for the end customer in managing bitcoins and it doesn't decrease operational risk for the bank(the question was why would bank be incentivised to use bitcoin) as far as i remember it is about some decentralization benefits,cdnt recollect the answer or options. Secondly i might be completely wrong
Yeah - I don't remember the reason why I selected this option. However I think it was in relation to hedging recommendation or risk reducation - so not having to manage a customer account for bitcoin/cash is a benefit. Example: Making incorrect entries onto the client ledger/incorrect transfer/theft - these are operational risk that bank/institute face. I feel I'm wrong - but these were my considerations.
 

bpdulog

Active Member
I planned arrive at 1:00, but there are multiple car accidents delay me for like 30 min, then I scratched my head searching building to building to find the exam location, there is no clear sign of GARP exam at all. so outraged.

I am so risk averse I took a 10am train to get to NYC. Got to exam site at 12pm.
 
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