STAP Proficiency Test

What is the BIA's holistic approach to identifying, assessing and managing risks across the organization?

• Governance, risk and compliance management

• Enterprise Risk Management

• Strategic Risk Management

• Operational Risk Management

The type of risks to identify in risk identification are ___

• Risk levels and risk category

• Initial risk and final risk

• Low, medium, high and severe risk

• Inherent risk and Residual risk

There are ____ categories of operational risk

• eight

• two

• four

• eight

Our portfolio managers have been systematically underreporting risks associated with a high-yield bond portfolio to meet performance targets, leading to a significant loss when the bonds default. This incident is best categorized as:

• People risk

• Process risk

• System risk

• External event risk

Your employee manipulates financial records to siphon company funds into their personal account. What type of operational risk is this?

• People risk

• Process risk

• System risk

• External event risk

1. The Accounting team cannot match its internal accounting records to investment trading records on time due to outdated procedures and inadequate checks, resulting in misreported financial statements and regulatory fines. This scenario exemplifies which type of operational risk?

• People risk

• Process risk

• System risk

• External event risk

2. There is a significant delay in processing payments because the third-party bank we rely on for is unable to operate due to a natural disaster. This scenario is an example of which type of operational risk?

• People risk

• Process risk

• System risk

• External event risk

A typhoon strikes the country, causing severe damage to the MOFE building and limiting access into the building for weeks. What type of operational risk is this?

• Process risk

• System risk

• People risk

• External event risk

A major glitch in the trading platform used by our traders causes a halt in trading activities, leading to missed investment opportunities and client dissatisfaction. This situation exemplifies which type of operational risk?

• External event risk

• System risk

• People risk

• Process risk

The biggest risk to any person or organization is

• When whatsapp and tiktok app malfunctions

• An earthquake

• Consistently keeping to low risk levels

• Not taking any risk at all