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NEW QUESTION: 1
Which of the following is the most important problem to solve for fitting a severity distribution for operational risk capital:
A. The fit obtained should reduce the combination of the fitting and approximation errors to a minimum
B. Empirical loss data needs to be extended to the ranges below the reporting threshold and above large value losses
C. Determine plausible scenarios to fill the data gaps in the internal and external loss data
D. The risk functional's minimization should lead to a good estimate of the 0.999 quantile
Answer: D
Explanation:
Explanation
Ultimately, the objective of the operational risk severity estimation exercise is to calculate the 99.9th percentile loss over a one year horizon; and everything else we do with data, collecting loss information, modeling, curve fitting etc revolves around this objective. If we cannot estimate the 99.9th percentile loss accurately, then not much else matters. Therefore Choice 'a' is the correct answer.
Minimizing the combination of fitting and approximation errors is one of the things we do with a view to better estimating the operational loss distribution. Likewise, empirical loss data generally is range bound because corporations do not require employees to log losses less than an threshold, and high value losses are generally rare. This problem is addressed by extrapolating both large and small losses, something that impacts the performance of our model. Likewise, one of the objectives of scenario analysis is to fill data gaps by generating plausible scenarios. Yet while all these are real issues to address, the primary problem we are trying to solve is estimating the 0.999th quantile.

NEW QUESTION: 2
View the Exhibit.

Refer to the exhibit. Which command was used to produce the output for the inband packet statistics?
A. show hardware internal cpu-mac inband counters
B. show interface counters detail
C. show interface counters all
D. show system internal interface counters module
Answer: A

NEW QUESTION: 3
You are the project manager of the QPS project. You and your project team have identified a pure risk.
You along with the key stakeholders, decided to remove the pure risk from the project by changing the project plan altogether. What is a pure risk?
A. It is a risk event that cannot be avoided because of the order of the work.
B. It is a risk event that only has a negative side and not any positive result.
C. It is a risk event that is generated due to errors or omission in the project work.
D. It is a risk event that is created by the application of risk response.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
A pure risk has only a negative effect on the project. Pure risks are activities that are dangerous to complete and manage such as construction, electrical work, or manufacturing. It is a class of risk in which loss is the only probable result and there is no positive result.
Pure risk is associated to the events that are outside the risk-taker's control.
Incorrect Answers:
B: The risk event created by the application of risk response is called secondary risk.
C: A risk event that is generated due to errors or omission in the project work is not necessarily pure risk.
D: This in not valid definition of pure risk.