Risk Management In Retail Banking Practice

What is the primary purpose of risk management in retail banking?

• A. To eliminate all financial risks
• B. To identify, assess, and mitigate risks
• C. To increase product sales

Credit risk refers to:

• A. The risk of losing staff
• B. The risk of borrower default
• C. The risk of system failure

Which of these is an example of operational risk?

• A. Currency devaluation
• B. Loan default
• C. System failure at a branch

A customer with an excellent repayment history is likely to:

• A. Be charged a lower rate
• B. Have the same rate as everyone else
• C. Be considered high risk

Which regulation protects personal data in Nigeria?

• A. CBN Act
• B. NDPR
• C. FRCN Code

A good stress test should be:

• A. Unrealistically optimistic
• B. Realistic and severe
• C. Only qualitative

Learning from near-misses is an example of:

• A. Ignoring mistakes
• B. Reputation management
• C. Continuous improvement

Which of the following is NOT a major category of risk in retail banking?

• A. Credit Risk
• B. Market Risk
• C. Product Innovation Risk

Which of these is a type of credit risk?

• A. Liquidity risk
• B. Counterparty risk
• C. Strategic risk

Operational risk primarily arises from:

• A. Market changes
• B. Internal processes, people, or systems
• C. Interest rate fluctuations