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Operational Risk Management

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Why we should manage operational risks? Please choose 3 answers *

a)

Minimise operational losses

b)

Achieve business objectives

c)

Better business decision

d)

Common industry practice

e)

Reduce tax

2.

Who responsible to manage operational risk?

a)

Risk Owner & Risk Agent

b)

Head of Department/ Branch Manager

c)

Chief Risk Officer

d)

All Staff

3.

Please select the correct examples of the causal factor contributing to operational risk

a)

Process: Inabsence of dual control function (checker & maker process) for financing

b)

System: Non-maintenance of ATM/CDM machine resulting to frequent breakdown.

c)

External: Staff did not comply to internal policies and procedures

d)

People: Non-comprehensive of SLA (Service Level Agreement) between Bank and vendor.

4.

What is BCM?

a)

Business Compliance Management

b)

Business Contingency Management

c)

Banking Continuity Management

d)

Business Continuity Management

5.

The following are the reasons why Bank requires BCM EXCEPT? *

a)

To carry out the critical business functions at a minimal resources during disaster

b)

Safeguard the Bank's customers and business partners

c)

Protect the Bank’s image and reputation

d)

Protect the banking industries

6.

What are the objectives of Call Tree exercise

a)

To ensure that all staff are well-informed in a structured and prompt manner in the event of disaster.

b)

To ensure that the overall call time taken is within the stipulated time (120 minutes).

c)

To ensure that the message is conveyed to staffs correctly.

d)

All of the above

7.

To understand operational risk, one should understand..

a)

Operational process, corporate environment and the affecting factors

b)

Operational process only

c)

The affecting factors and regulations only

d)

No need to understand others, it just needs to understand the operational risk

8.

What are the affecting factors which influence operational activities as well as the Operational risk..

a)

Nature of the company

b)

Laws and regulations

c)

Stekaholder Value

d)

All the above three factors

9.

Which of the following risk statement is catagorized as operational risk..

a)

PEOPLE RISK

b)

SYSTEM RISK

c)

PROCESS RISK

d)

ALL THE STATMENTS

10.

When would Risk Management be involved in Operational Process ?

a)

At the begining of execution process

b)

At the first strategic decision process

c)

At the first initial strategic plan

d)

During audit process and BOC meeting

11.

Based on market best practice, which method provides foundation and framework for linking and integrating Operational risk to enterprise Risk Management..

a)

ISO9001

b)

ISO31000

c)

ISO37000

d)

ISO26000

12.

Which one of the following statements is TRUE..

a)

To achieve goal setting, organization should define their goal achievement

b)

To set the strategy, organization should identify the risks

c)

To define the risks, organization should define the opportunity

d)

During setting up the strategy, organization should be focused on the opportunity exploitation, instead of risks identification

13.

what is business continuance plans?

a)

the process of making planing strategy.

b)

the copying of physical or virtual files or databases to a secondary location for preservation in case of equipment failure or catastrophe.

c)

the steps that a company puts into place to make sure it is capable of surviving.

14.

why should the information be in the right place?

a)

costs of future.

b)

to make good business decisions.

c)

create a backup.

d)

to contribute the productive working relationship.

15.

An increase in Minimum wage may impact a business because…

a)

It will increase profits

b)

It will increase total costs of the business

c)

It will increase consumer products

d)

It will increase customers

16.

In the SWOT analysis, Strengths and Weaknesses are what?

a)

External Factors

b)

Poor Planning

c)

Internal Factors

d)

Good Management

17.

Great communication skills and analytical abilities is an example of a type of

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

18.

A business has a poor reputation among customers , this would be considered to be a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

19.

Changes in demographics results in shifting demand away from products, this is classified as a

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

20.

What is the purpose of performing a SWOT Analysis?

a)

Gives the management team a broader view on the potential opportunity

b)

Evaluates whether the business venture is a good idea.

c)

Identifies internal and external factors that may affect the business future performance.

d)

Access an organization’s performance