17 Questions
What is the primary reason for Financial Institutions to implement regular risk monitoring systems?
To reduce the impact of high-impact risk events
What is the goal of a control strategy in risk mitigation?
To reduce or eliminate the impacts of identified risks
What is a conventional means to transfer risk to another organization?
Purchasing insurance
What is the potential pitfall of basing risk acceptance decisions on estimates or predictions?
The information may not accurately forecast the future
What is the relationship between risk identification and control strategy?
Risk identification is a prerequisite for control strategy
What is the primary goal of risk management in a financial institution?
To minimize the cause of a recognized risk event
What is inherent risk in the context of banking?
The uncertainty that surrounds future events and outcomes
What is the term for the level of risk remaining after applying risk controls?
Residual risk
What influences the nature and extent of risk management activities in a financial institution?
Risk appetite
What is the process of identifying risk areas and estimating the probability of a risk occurrence?
Risk identification
What can effective mitigation strategies and controls achieve?
Reduce adverse risks (threats) or increase opportunities
What is the primary purpose of a Key Risk Indicator?
To provide early warning of potential risk adverse effects
What is the term used to describe the likelihood of a risk occurring?
Probability
What is the purpose of a Risk Register?
To identify and prioritize risks for remediation
What is the term used to describe the potential losses or consequences of a risk occurring?
Impact
What is the purpose of a Remediation Strategy?
To develop and implement policies to control risk
What is the term used to describe an organization's willingness to accept or take on risk?
Risk Appetite
Learn about risk management strategies and approaches in financial institutions, including control strategies and mitigating high-impact risk events. Understand the importance of regular risk monitoring systems and predicting future risks.
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