Clear communication limits trade discrepancies.

[Bubbas]

Business English Lesson, Advanced Level

ESL/EFL Test #450 "Hedge Fund Operational Risk", question 9

Additionally, there needs to be a clear ......... between those responsible for trading and trade reporting, to limit the possibility of trade discrepancies.

(a) communication
(b) distinction
(c) integration
(d) segregation

Business English Lesson, Advanced Level

ESL/EFL Test #450 "Hedge Fund Operational Risk", answer 9

Additionally, there needs to be a clear segregation between those responsible for trading and trade reporting, to limit the possibility of trade discrepancies.

Correct answer: (d) segregation

Your answer was: incorrect
Additionally, there needs to be a clear communication between those responsible for trading and trade reporting, to limit the possibility of trade discrepancies.
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I would think that segregation is to limit the possibility of conflicts of interest. Clear communication limits trade discrepancies.

Bubbas

[Mister Micawber]

No, we are talking about auditing and fair operation concerns here.
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Native English teacher at Mister Micawber's