Podcast
Questions and Answers
What is the primary reason for Financial Institutions to implement regular risk monitoring systems?
What is the primary reason for Financial Institutions to implement regular risk monitoring systems?
- To eliminate risks identified and accepted
- To reduce the impact of high-impact risk events (correct)
- To accurately forecast the future
- To shift the burden of risk consequence to another party
What is the goal of a control strategy in risk mitigation?
What is the goal of a control strategy in risk mitigation?
- To completely eliminate risks
- To transfer risk to another party
- To increase the risk appetite
- To reduce or eliminate the impacts of identified risks (correct)
What is a conventional means to transfer risk to another organization?
What is a conventional means to transfer risk to another organization?
- Risk mitigation
- Risk monitoring
- Risk assessment
- Purchasing insurance (correct)
What is the potential pitfall of basing risk acceptance decisions on estimates or predictions?
What is the potential pitfall of basing risk acceptance decisions on estimates or predictions?
What is the relationship between risk identification and control strategy?
What is the relationship between risk identification and control strategy?
What is the primary goal of risk management in a financial institution?
What is the primary goal of risk management in a financial institution?
What is inherent risk in the context of banking?
What is inherent risk in the context of banking?
What is the term for the level of risk remaining after applying risk controls?
What is the term for the level of risk remaining after applying risk controls?
What influences the nature and extent of risk management activities in a financial institution?
What influences the nature and extent of risk management activities in a financial institution?
What is the process of identifying risk areas and estimating the probability of a risk occurrence?
What is the process of identifying risk areas and estimating the probability of a risk occurrence?
What can effective mitigation strategies and controls achieve?
What can effective mitigation strategies and controls achieve?
What is the primary purpose of a Key Risk Indicator?
What is the primary purpose of a Key Risk Indicator?
What is the term used to describe the likelihood of a risk occurring?
What is the term used to describe the likelihood of a risk occurring?
What is the purpose of a Risk Register?
What is the purpose of a Risk Register?
What is the term used to describe the potential losses or consequences of a risk occurring?
What is the term used to describe the potential losses or consequences of a risk occurring?
What is the purpose of a Remediation Strategy?
What is the purpose of a Remediation Strategy?
What is the term used to describe an organization's willingness to accept or take on risk?
What is the term used to describe an organization's willingness to accept or take on risk?
