Genuine 8020 Dumps (V8.02) – Get Operational Risk Management (ORM) Certificate Fast with the Most Reliable Resource of DumpsBase

1. What are the roles of business versus risk management in developing and implementing risk assessments?

2. When a control is found to be ineffective, which of the following steps should be take next?

3. How can a chief risk officer encourage the governing body and executive management team to create a stronger risk culture?

4. How should Near Misses and Opportunity Costs be treated within Operational Risk?

A. Ignored.

B. Recorded and Analyzed. Used in calculation of Operational Risk Capital.

C. Reported. Recorded and Analyzed. Not Used in calculation of Operational Risk Capital.

D. Reported, Recorded and Analyzed, Used in calculation of Operational Risk Capital.

5. Ideally, which of the following should be completed as part of the risk assessments of service providers?

6. Team supervisors are key in the development and maintenance of the risk culture because they are:

7. Risk Sensitive pricing is required for several good reasons.

Which one of the following is not relevant to the Management's evaluation of the correct approach to Risk Sensitive pricing?

8. In relation to financial crime. OFAC is a definition for which organization?

9. The Internal Loss Multiplier (ILM) is part of the Basel III Standardized Approach.

Which of these definitions best descibes it?

10. For the National Australia Bank - FX Options case study, large and unusual transaction activity was a concern for what reason?

A. Complex structured transactions aided in the smoothing of losses.

B. Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.

C. Deep-in-the-money options and other complex structured transactions aided in the smoothing of profits and losses.

D. Deep-in-the-money options aided in the smoothing of losses.

11. Managing financial crime is a part of risk and compliance for many firms.

Which of the following is a useful control to help reduce this risk?

A. Having the business be a cash only business and not report any transactions.

B. The requirements to trace all transactions when they are entered into spreadsheets.

C. Development of scenarios and red flags that are used to monitor transactions and identify suspicious customers and activities.

D. Local regulations that allow a bank to not report transactions by family members of the board.

12. Stafford Beers Viable System Model (VSM) has several implementation elements.

Which of the following is not one of these?

A. Governance

B. Input

C. Process

D. Output

13. In operational resilience, what is impact tolerance?

14. For the FTX case study, what was the "backdoor" used for?

15. Which of the below is a definition of climate risk?

16. Process mapping is:

17. Which of the following statements best defines the properties of top-down key risk indicators?

18. Confidence Accounting can be defined as:

A. An approach that encourages companies and audit firms to have diverse boards.

B. An approach that encourages companies and audit firms to use ranges, rather than discrete numbers, for major accounting entries.

C. An approach that encourages companies and audit firms to use regular statements in their Al software.

D. An approach that encourages companies and audit firms to stop using figures and maths.

19. Risk and compliance functions often work together; which of the following best desribes the issue with a "zero risk appetite"?

A. A zero risk appetite is illegal under all known regulations.

B. It means that there can be a risk self assessment workshop for the compliance department.

C. An organization may decide that it will accept a certain level of outstanding compliance issues and thus will breach such an appetite statement.

D. It will result in a compliance investigation conducted by the first line.

20. Which of the follow is not included in PRMIA's 10 principles of good governance?

A. Risk appetite.

B. Holding the PRM Designation.

C. External validation.

D. Clear accountability.