Risk Management

When talking about a loan, credit risk means what?

• It's very likely that the borrower will repay the lender.

• The person has a lot of credit

• The person has a lot of capital

• It's very likely that the borrower won't repay the lender.

Operational Risk is the risk of-

• When borrowers or counterparties fail to meet contractual obligations

• Loss due to errors, interruptions, or damages caused by people, systems, or processes

• The unpredictability of equity markets, commodity prices, interest rates, and credit spreads

• All the above

”Payments credited to the wrong account” is an example of which Risk?

• Liquidity Risk

• Operational Risk

• Account Risk

• Market Risk

Risk indicators will 

• Give the Sign of profits

• Give the signal of possible risk

• Show that definitely the risk will occur

• Give the sign  of less income

Which of the following is not a role of compliance officers in banks?

• Taking care of the training of newly recruited personnel and bank staff

• Carry out research to stay abreast of public interest and consumer protection laws

• plan and execute compliance programs to educate bank staff on new regulations

• Be part of the business operations

The Chief compliance officer should

• take approval from the business heads before exercising the judgement

• Independently exercise judgement

• Cannot Independently exercise judgement

• contact the Functional heads before exercising the judgement

BCBS  Stands for  

• Basel commission on Banking supervision

• Basel company on Banking Supervision

• Basel committee on Banking supervision

• Basel committee on Banking Solutions

Which of the following are risk faced by bank?
i)   Credit Risk
ii)  Market Risk
iii) Income Risk
iv)  Operational Risk

• ii, iii, iv

• i, ii, iii, iv

• i, ii, iv

• i, iii, iv

In line with BASEL-II guidelines, what was the minimum percentage CRAR prescribed by Reserve Bank of India?

• 8%

• 7%

• 9%

• 6%

CCO Stands for

• Chief Checking officer

• Chief Compliance officer

• Chief Controlling officer

• Chief Compliance office