Operational Risk Management

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What type of risk is involved when an employee writes the wrong amount on a check?

Strategic risk

Hazard risk

Operational risk (correct)

Financial risk

What is an example of a 'process' failure in the scenario described?

Lack of employee training

Inadequate payment process (correct)

Insufficient staff authorization

All of the above

What is another type of event that can cause operational risk?

Power cut (correct)

Change in management

Employee termination

Economic downturn

What is the primary benefit of allowing anonymous incident reporting in the risk identification process?

To increase the likelihood of response from employees who are worried about repercussions from speaking up Signup and view all the answers

Why is it important to manage operational risks?

To reduce the likelihood of financial losses Signup and view all the answers

What is a potential way to mitigate the risk of writing the wrong amount on a check?

Having a second staff member authorize major payments Signup and view all the answers

What is the main advantage of seeking employee feedback in the risk identification process?

To identify risks that may not be considered otherwise Signup and view all the answers

What is the main advantage of using models or software in the risk identification process?

To help identify and classify risks Signup and view all the answers

What is the primary benefit of seeking employee feedback in a group setting?

To encourage brainstorming and lead to a higher number of identified risks Signup and view all the answers

What is the primary purpose of analyzing customer complaints in the risk identification process?

To identify risks associated with processes or issues that customers frequently complain about Signup and view all the answers

What type of risks can be identified through analyzing customer complaints?

Reputational risks Signup and view all the answers

What is a key step in the risk management process when beginning to identify risks?

Breaking down the big picture into high-level categories Signup and view all the answers

What is a benefit of asking insightful questions during the risk management process?

It helps to identify potential risks that may not have been considered Signup and view all the answers

What is a method of identifying prospective risks in an organization?

Brainstorming with staff or external stakeholders Signup and view all the answers

Operational Risk Management

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Questions and Answers

What type of risk is involved when an employee writes the wrong amount on a check?

What is an example of a 'process' failure in the scenario described?

What is another type of event that can cause operational risk?

What is the primary benefit of allowing anonymous incident reporting in the risk identification process?

Why is it important to manage operational risks?

What is a potential way to mitigate the risk of writing the wrong amount on a check?

What is the main advantage of seeking employee feedback in the risk identification process?

What is the main advantage of using models or software in the risk identification process?

What is the primary benefit of seeking employee feedback in a group setting?

What is the primary purpose of analyzing customer complaints in the risk identification process?

What type of risks can be identified through analyzing customer complaints?

What is a key step in the risk management process when beginning to identify risks?

What is a benefit of asking insightful questions during the risk management process?

What is a method of identifying prospective risks in an organization?

Which of the following is a category of risk that an organization may face?

What is a purpose of flow charting a process in risk management?

What is a key aspect of risk management in an organization?

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