OPERATIONAL RISK QUIZ 25TH JUNE 2024

What is the primary objective of operational risk management in banks?

• Maximizing profits
• Minimizing losses
• Complying with regulations
• Enhancing customer satisfaction

Which of the following is NOT a component of operational risk?

• People
• Processes
• Systems
• Marketing

Which Basel regulation specifically addresses operational risk?

• Basel I
• Basel II
• Basel III
• Basel IV

Which approach allows banks to use their own internal models to estimate operational Risk Capital Requirements?

• Basic Indicator Approach (BIA)
• Standardized Approach (SA)
• Advanced Measurement Approach (AMA)
• Internal Ratings-Based Approach (IRB)

Operational risk includes all the following EXCEPT:

• Internal fraud
• External Fraud
• Market Risk
• System Failures

What is the purpose of a risk and control self-assessment (RCSA)?

• To calculate credit risk
• To evaluate and mitigate operational risks
• To determine market trends
• To improve customer relations

Which of the following is an example of an operational risk event?

• Interest rate fluctuation
• Data breach
• Exchange rate fluctuation
• Commodity price change

Which tool is used to identify potential risks and their impacts on operations?

• SWOT analysis
• Risk mapping
• Value chain analysis
• Market analysis

Which type of insurance can help mitigate operational risks in banks?

• Life insurance
• Property insurance
• Directors and officers (D&O) liability insurance
• Employee health insurance

What is the role of a Chief Risk Officer (CRO) in a bank?

• To manage marketing strategies
• To oversee risk management practices
• To handle customer complaints
• To develop new financial products