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NEW QUESTION: 1
When modeling operational risk using separate distributions for loss frequency and loss severity, which of the following is true?
A. Loss severity and loss frequency distributions are considered as a bivariate model with positive correlation
B. Loss severity and loss frequency are considered independent
C. Loss severity and loss frequency are modeled using the same units of measurement
D. Loss severity and loss frequency are modeled as conditional probabilities
Answer: B
Explanation:
Explanation
When modeling operational loss frequency distribution (which, for example, may be based upon a Poisson distribution) and a loss severity distribution (for example, based upon a lognormal distribution), it is assumed that the frequency of losses and the severity of the losses are completely independent and do not impact each other. Therefore Choice 'a' is correct, and the others are not valid assumptions underlying the operational loss modeling.
Once each of these distributions has been built, a random number is drawn from each to determine a loss scenario. The process is repeated many times as part of a Monte Carlo simulation to get a the loss distribution.

NEW QUESTION: 2

A. Option D
B. Option E
C. Option B
D. Option C
E. Option A
Answer: A,C

NEW QUESTION: 3
ABC Corp. has a requirement to share business documents from its Oracle E-Business Suite Release12 (EBS) instance with external business-to-business (B2B) exchange partners. Select the best method that you would recommend to meet this requirement.
A. Use the Advanced Workflow Mailer functionality in Oracle E-Business Suite Release 12.
B. Use Oracle Applications Framework to integrate with external B2B exchange.
C. Use notification mailer to share the documents with external B2B exchange.
D. Build a workflow process and integrate it with external B2B exchange.
E. Build a workflow process and use Business Event System to integrate it with an external B2B exchange partner.
Answer: E

NEW QUESTION: 4
VPN gateways must authenticate to each other prior to exchanging information. What are the two types of credentials used for authentication?
A. Certificates and pre-shared secret
B. IPsec and VPN Domains
C. Certificates and IPsec
D. 3DES and MD5
Answer: A