What is risk assessment in finance?
Risk assessment involves identifying and evaluating financial risks to minimize negative impacts on investments or operations.
Which type of risk involves interest rate fluctuations?
Interest rate risk refers to the potential for investment losses due to changes in interest rates.
What is regulatory compliance in financial services?
Regulatory compliance means adhering to laws, regulations, and standards set by governing authorities.
What is the role of the SEC?
The Securities and Exchange Commission (SEC) regulates securities markets to protect investors and maintain fair practices.
Why is Know Your Customer (KYC) important?
KYC procedures help financial institutions verify clients' identities and prevent money laundering and fraud.
What does anti-money laundering (AML) refer to?
AML laws are designed to prevent criminals from disguising illegally obtained funds as legitimate income.
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What is operational risk?
Operational risk is the potential for loss from inadequate or failed internal processes, people, or systems.
What is market risk?
Market risk is the possibility of losses due to changes in market prices or conditions.
Why must financial professionals follow compliance training?
Compliance training ensures professionals understand regulations and ethical standards to avoid violations.