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Certified Implementation Specialist - Cloud Provisioning and Governance exam
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NEW QUESTION: 1
A security manager has started a new job and has identified that a key application for a new client does not have an accreditation status and is currently not meeting the compliance requirement for the contract's SOW. The security manager has competing priorities and wants to resolve this issue quickly with a system determination and risk assessment. Which of the following approaches presents the MOST risk to the security assessment?
A. The security manager does not interview the vendor to determine if the system description is accurate.
B. The security manager reviews the system description for the previous accreditation, but does not review application change records.
C. The security manager hires an administrator from the previous contract to complete the assessment.
D. The security manager decides to use the previous SRTM without reviewing the system description.
NEW QUESTION: 2
Leases allow a customer to use an institution's property for a specified period. Most lease agreements give the lessee the option of purchasing the property:
A. at principal amount
B. None of these
C. above fair market value
D. below fair market value
NEW QUESTION: 3
What would be the consequences of a model of economic risk capital calculation that weighs all loans equally regardless of the credit rating of the counterparty?
I. Create an incentive to lend to the riskiest borrowers
II. Create an incentive to lend to the safest borrowers
III. Overstate economic capital requirements
IV. Understate economic capital requirements
A. I and IV
B. III only
C. I only
D. II and III
If capital calculations are done in a standard way regardless of risk (as reflected by credit ratings), then it creates a perverse incentive for the lenders' employees to lend to the riskiest borrowers that offer the highest expected returns as there is no incentive to 'save' on economic capital requirements that are equal for both safe and unsafe borrowers. Therefore statement I is correct.
Given that the portfolio of such an institution is likely to then comprise poor quality borrowers, and economic capital would be based upon 'average' expected ratings, it is likely to carry lower economic capital given its exposures. Therefore any such economic risk capital model is likely to understate economic capital requirements. Therefore statement IV is correct.
Statements II and III are incorrect and Choice 'b' is the correct answer.
NEW QUESTION: 4
If closing inventory at the end of an accounting period is overvalued by £2000 and no adjustment is made, the net profit in the following accounting period will be:
A. £4,000 understated
B. £2,000 understated
C. £4,000 overstated
D. £2,000 overstated
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