Bangladesh Bank Risk Management Guidelines Quiz
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Questions and Answers

What is the purpose of the DOS circular no. 04 issued by Bangladesh Bank?

  • To announce the modification of prudential regulations for banks
  • To remind banks about the previous circulars
  • To inform about the change in the head office address
  • To instruct scheduled banks to follow the revised 'Risk Management Guidelines for Banks' (correct)
  • How often are banks instructed to review the risk management guideline?

  • At least once a year (correct)
  • Every six months
  • Only when there are significant changes in the banking sector
  • Every two years
  • What is the role of the board in relation to the risk management guideline?

  • To prepare the risk management guideline
  • To review the guideline quarterly
  • To approve the comprehensive risk management guideline (correct)
  • To submit the guideline to the Department of Off-site Supervision
  • What is the significance of the DOS circular no. 02 dated February 15, 2012?

    <p>It is referred to in the current circular for risk management guidelines</p> Signup and view all the answers

    What is the requirement for banks regarding the risk management guideline?

    <p>Each bank shall prepare a comprehensive risk management guideline and get it approved by the board</p> Signup and view all the answers

    Study Notes

    Risk Management Guideline

    • The DOS circular no. 04 issued by Bangladesh Bank aims to ensure effective risk management in banks.
    • Banks are instructed to review the risk management guideline at least every three years or as needed.

    Board's Role

    • The board of directors is responsible for approving and overseeing the implementation of the risk management guideline.

    DOS Circular no. 02

    • The DOS circular no. 02 dated February 15, 2012, emphasizes the importance of risk management in banks.

    Requirements for Banks

    • Banks are required to establish a robust risk management system, including a risk management policy, risk identification, risk assessment, risk mitigation, and risk monitoring.
    • Banks must also have an independent risk management function, a risk management committee, and a chief risk officer.

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    Description

    Test your knowledge of risk management guidelines for banks in Bangladesh with this quiz. Explore circulars and letters from the Department of Off-Site Supervision of Bangladesh Bank to understand the regulatory framework governing risk management practices in the country's banking sector.

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