FRM Part II · FRM Exam Part II · Risk Reporting
Which content is most appropriate for an operational risk report prepared for the board's risk committee, as opposed to a report for a business-line operations team?
A board risk committee report should present aggregate exposure against risk appetite, significant losses, major control weaknesses and emerging risks. Granular transaction logs and system details suit operational teams, not directors, who need a strategic view that supports oversight and decisions.
- ATransaction-level error logs and daily reconciliation breaks
- BAggregate exposure versus risk appetite, significant loss events, key control weaknesses and emerging risksCorrect
- CIndividual employee performance records
- DSystem configuration details for each application
Explanation
Board-level reports should be aggregated, strategic and linked to risk appetite, while operational teams need granular detail. The other options are too detailed or unrelated to board oversight.
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