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| Section | Weight | Objectives |
|---|---|---|
| Operational Resilience | 5% | - Third-party/vendor risk management - Business continuity and recovery - DORA and resilience regulations |
| Compliance & Regulatory Risk | 10% | - Compliance risk types and controls - Enterprise compliance frameworks - Basel Accords and global regulations |
| Risk Assessment | 20% | - Top-down scenario analysis - Residual risk and issue management - Risk and Control Self-Assessment (RCSA) - Bottom-up process modeling |
| Introduction to Operational Risk Management | 10% | - Embedding risk management practices - Risk management frameworks and principles - ESG and climate risk considerations |
| Risk Management Framework | 15% | - Strategy and framework implementation - Risk policies, limits, and pricing - Risk capacity and risk appetite |
| Risk Information & Monitoring | 15% | - Key Risk Indicators (KRIs) - Loss data collection and analysis - Risk reporting and communication |
| Risk Governance | 15% | - Risk culture and ethical conduct - Governance structures and responsibilities - Roles of first, second, and third lines of defense |
| Operational Risk Capital & Modeling | 10% | - Capital requirements and approaches - Basel III and recent developments - Basic and advanced measurement methods |
When compared to a medium severity medium frequency risk, the operational risk capital requirement for a high severity very low frequency risk is likely to be:
Correct Answer: C 🗳️
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The probability of default of a security during the first year after issuance is 3%, that during the second and third years is 4%, and during the fourth year is 5%. What is the probability that it would not have defaulted at the end of four years from now?
Correct Answer: B 🗳️
Explanation: Only visible for DumpsTests members. You can sign-up / login (it's free).
For a bank using the advanced measurement approach to measuring operational risk, which of the following brings the greatest 'model risk' to its estimates:
Correct Answer: C 🗳️
Explanation: Only visible for DumpsTests members. You can sign-up / login (it's free).
For a FX forward contract, what would be the worst time for a counterparty to default (in terms of the maximum likely credit exposure)
Correct Answer: A 🗳️
Explanation: Only visible for DumpsTests members. You can sign-up / login (it's free).
Under the contingent claims approach to credit risk, risk increases when:
I. Volatility of the firm's assets increases
II. Risk free rate increases
III. Maturity of the debt increases
Correct Answer: A 🗳️
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