Podcast
Questions and Answers
What is the Basel Committee's definition of operational risk?
What is the Basel Committee's definition of operational risk?
- The risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events (correct)
- The risk of loss resulting from natural disasters and terrorism
- The risk of adverse change in the value of capital resources resulting from operational events
- The risk of loss resulting from employee misconduct
Which of the following is NOT one of the categories of Operational Risk under BASEL II?
Which of the following is NOT one of the categories of Operational Risk under BASEL II?
- Terrorism/Vandalism
- Software/Hardware failure
- Business Disruptions and Systems Failure
- Money laundering (correct)
What is the risk of loss resulting from employee theft and embezzlement categorized as?
What is the risk of loss resulting from employee theft and embezzlement categorized as?
- Internal Fraud (correct)
- External Fraud
- Employee Practices and Work Place Safety
- Rogue trader risk
Which of the following is NOT one of the three major operational risks for a bank?
Which of the following is NOT one of the three major operational risks for a bank?
According to the International Association of Insurance Supervisors, what is operational risk defined as?
According to the International Association of Insurance Supervisors, what is operational risk defined as?
Which category of Operational Risk under BASEL II includes damage to physical assets?
Which category of Operational Risk under BASEL II includes damage to physical assets?
What is the risk related to robbery, forgery, check kiting, and computer hacks categorized as?
What is the risk related to robbery, forgery, check kiting, and computer hacks categorized as?
What is the risk related to misreporting, employee theft, and embezzlement categorized as?
What is the risk related to misreporting, employee theft, and embezzlement categorized as?
'Execution, delivery, and process management' is a part of which category of Operational Risk under BASEL II?
'Execution, delivery, and process management' is a part of which category of Operational Risk under BASEL II?
'Organized crime' is associated with which type of operational risk?
'Organized crime' is associated with which type of operational risk?
What type of risk is associated with an employee taking unauthorized actions resulting in large losses?
What type of risk is associated with an employee taking unauthorized actions resulting in large losses?
Which organization faced a cyberattack affecting 143 million people in the United States in 2017?
Which organization faced a cyberattack affecting 143 million people in the United States in 2017?
What kind of information was obtained by hackers during the Equifax cyberattack?
What kind of information was obtained by hackers during the Equifax cyberattack?
What defenses have been developed against cyber threats?
What defenses have been developed against cyber threats?
What led to a fine of about USD 2.8 billion for Volkswagen?
What led to a fine of about USD 2.8 billion for Volkswagen?
What is the risk associated with non-compliance to cheat and assisting clients with tax evasion?
What is the risk associated with non-compliance to cheat and assisting clients with tax evasion?
What did the hackers plan to embezzle from the Central Bank of Bangladesh through a series of international transactions?
What did the hackers plan to embezzle from the Central Bank of Bangladesh through a series of international transactions?
What was one of the most notorious incidents involving rogue trading activities?
What was one of the most notorious incidents involving rogue trading activities?
What organization incurred fines for failing to act in accordance with industry laws and regulations?
What organization incurred fines for failing to act in accordance with industry laws and regulations?
What kind of risk involves activities such as money laundering and terrorism financing?
What kind of risk involves activities such as money laundering and terrorism financing?
What is credit risk?
What is credit risk?
What is credit default risk?
What is credit default risk?
What is concentration risk?
What is concentration risk?
Which type of risk is associated with a country’s political instability and macroeconomic performance?
Which type of risk is associated with a country’s political instability and macroeconomic performance?
What is the probability that the lender will not receive the principal and interest payments of a debt required to service the debt extended to a borrower known as?
What is the probability that the lender will not receive the principal and interest payments of a debt required to service the debt extended to a borrower known as?
What type of credit risk arises when a corporate or individual borrower fails to meet their debt obligations?
What type of credit risk arises when a corporate or individual borrower fails to meet their debt obligations?
What is the main focus of qualitative credit risk analysis?
What is the main focus of qualitative credit risk analysis?
Which of the following is NOT a factor used to calculate economic capital for credit risk?
Which of the following is NOT a factor used to calculate economic capital for credit risk?
What aspect does the 'character' attribute assess in credit risk analysis?
What aspect does the 'character' attribute assess in credit risk analysis?
In credit risk analysis, what does 'collateral' refer to?
In credit risk analysis, what does 'collateral' refer to?
What does 'Capacity' assess in credit risk analysis?
What does 'Capacity' assess in credit risk analysis?
Which type of credit analysis focuses more on asset quality and earnings capacity?
Which type of credit analysis focuses more on asset quality and earnings capacity?
What is the likelihood that a borrower will default on their loan obligations referred to as in credit risk analysis?
What is the likelihood that a borrower will default on their loan obligations referred to as in credit risk analysis?
What is used to evaluate the amount of loss exposure that a lender is exposed to at any particular time in credit risk analysis?
What is used to evaluate the amount of loss exposure that a lender is exposed to at any particular time in credit risk analysis?
What kind of information does quantitative credit risk analysis involve consideration of?
What kind of information does quantitative credit risk analysis involve consideration of?
What are the limitations of financial statements in credit risk analysis?
What are the limitations of financial statements in credit risk analysis?
