As to general risk management principles, the Model Code mentions that the organizationalstructure should ensure independent risk management and controls. Which one of the following is not among those controls?
A) open and effective communication channels between all levels of staff and cross-functions should be maintained.
B) regular internal audits should be carried out together with trading and risk management to ensure early identification of internal control weaknesses
C) complete segregation of duties between the front, middle and back office activities
D) a separate system for independent monitoring to ensure compliance with the risk management framework should be in place

Question

Quizplus · Accepted Answer

Regular internal audits should be independent and not carried out together with trading and risk management to ensure unbiased identification of internal control weaknesses.

As to General Risk Management Principles, the Model Code Mentions