Quiz on Operational Risk Management in Islamic Banks

What does operational risk refer to?

• Risk of loss from credit defaults

• Risk of loss from market fluctuations

• Risk of loss from inadequate internal processes

• Risk of loss from investment failures

Which of the following is NOT a source of operational risk?

• People

• Market volatility

• External events

• Inadequate internal processes

What is the role of the Chief Risk Officer (CRO) in operational risk management?

• To manage financial investments

• To handle customer relations

• To oversee operational risk management

• To design marketing strategies

What does EORM stand for?

• Enterprise Operational Risk Management

• Enterprise-wide Operational Risk Management

• Enterprise-wide Organizational Risk Management

• External Operational Risk Management

Which of the following is a unique operational risk for Islamic financial institutions?

• Market risk

• Credit risk

• Shariah non-compliance

• Liquidity risk

What is Loss Event Data (LED) used for?

• To assess market trends

• To evaluate customer satisfaction

• To analyze investment performance

• To assess exposure to operational risk

Which of the following is a component of operational risk management?

• Key Risk Indicators

• Investment Strategies

• Market Analysis

• Customer Feedback

What does the acronym KRIs stand for?

• Key Resource Indicators

• Key Risk Indicators

• Key Revenue Indicators

• Key Regulatory Indicators

What is the purpose of the ORION system?

• To enhance customer service

• To monitor operational risk

• To manage financial investments

• To improve marketing strategies

Which of the following is a type of cyber threat?

• Natural disasters

• Political uncertainties

• Employee theft

• Market fluctuations