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FRM Part II · FRM Exam Part II · Contingency Funding Planning

Which element is most essential for the CFP's governance section to ensure the plan works during a real crisis?

The CFP needs a clear crisis management team with defined roles, decision authority, escalation paths and communication lines to regulators, investors and others. Without this governance, even well-designed funding actions may not be executed quickly or consistently when stress occurs.

  1. AA clear crisis management team with defined roles, decision authority and communication lines, including with regulators and investorsCorrect
  2. BA detailed forecast of next year's net interest margin
  3. CA list of all branch opening hours
  4. DA description of the bank's long-term strategic growth targets

Explanation

In a crisis, speed and clarity matter. Defined roles, authority, escalation paths and communication channels to stakeholders allow the plan to be executed. Margin forecasts, branch hours and growth targets do not support crisis execution.

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