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IIA Exam IIA-CFSA Topic 3 Question 29 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 29
Topic #: 3

[All IIA-CFSA Questions]

Asset/Liability (ALM) is a short and long term planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve spread. A sound ALM policy must manage following types of risks EXCEPT:

ACredit Risk

BControl Risk

CLiquidity Risk

DCapital Risk

Show Suggested Answer

Suggested Answer: D

by Nelida at Feb 08, 2023, 12:59 AM

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Herminia

3 months ago

Liquidity Risk? More like Liquidity Nightmare, am I right?

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Penney

1 months ago

D) Capital Risk

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Alease

2 months ago

B) Control Risk

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Leeann

2 months ago

A) Credit Risk

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Marisha

3 months ago

Capital Risk? What is this, a gym membership question?

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Kristine

3 months ago

This is a tricky one, but I'm going with C) Liquidity Risk. That's not one of the core risks that ALM is designed to manage.

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Shawn

2 months ago

User 3: A) Credit Risk is definitely a key risk that ALM must manage.

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Sarina

2 months ago

User 2: I think D) Capital Risk is also not a risk that ALM focuses on.

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Marion

2 months ago

User 1: I agree with you, C) Liquidity Risk is not one of the risks managed by ALM.

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Genevive

3 months ago

D) Capital Risk seems like the odd one out here. ALM is all about managing the balance sheet, so capital risk should be a key consideration.

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Elvis

1 months ago

C) Liquidity Risk

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Yolande

1 months ago

B) Control Risk

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Sharee

1 months ago

A) Credit Risk

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Emilio

1 months ago

C) Liquidity Risk

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Loreta

2 months ago

B) Control Risk

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Bettye

2 months ago

A) Credit Risk

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Quentin

3 months ago

Hmm, I'm not sure about this one. I'll have to review my ALM notes again.

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Allene

3 months ago

Hmm, I see your point. Capital risk does seem like a key risk to manage in ALM.

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Brice

3 months ago

I disagree, I believe the answer is D) Capital Risk.

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Lura

3 months ago

I think the answer is B) Control Risk. ALM is focused on managing financial risks, not operational risks like control risk.

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Michel

2 months ago

Yes, control risk is more related to operational risks, not financial risks like ALM focuses on.

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Julio

3 months ago

I agree, ALM is more about financial risks like credit, liquidity, and capital risk.

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Allene

4 months ago

I think the answer is B) Control Risk.

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