as being the market norm for similarly situated personnel in competitive organizations

using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees

using the risk reward profile for each business line in the organization

as commensurate with policies to attract and retain high income / revenue earners

Lending to consumers and small businesses.

Deposit taking activities which generated net interest income.

The provision of fee based services to its customers.

Complex derivative trades based on volatility indices.

Bob Citron engaged in risky strategies to benefit personally

Bob Citron tried to "ride the yield curve"

Bob Citron heavily leveraged his positions using repos

Citron's losses were eventually exposed by massive margin calls

I, II and IV only

I and II only

I, III and IV only

All of these are PRMIA Governance Principles

Failed corporate governance

Accounting abuses

Unfair pricing to customers

Over stating actual sales

selling short-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling long-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling short-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling long-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

Alerted senior management to the problems before the major losses occurred

Helped very little as Nick Leeson hid many trades

Not correctly assessed the risk in Nick Leeson's option trades as they have non-linear price characteristics

Been used if senior management had ever seen it