Font size
WorksheetsTodays' Training
Total questions: 39
Worksheet time: 37mins
Words that come to mind when you think about this training
Highest-grossing Christmas film?
Home Alone
Die Hard
The Grinch
Miracle on 34th street
What are the strategic risk and capital processes?
Strategic risk process involves identifying, assessing, and managing risks that could impact the organization's strategic objectives
Jingle Bells was originally a Thanksgiving song.
True
False
Which of these proceses are not strategic risk and capital processes?
Recovery planning
Risk appetite
Risk assessment
Financial reporting
Risk appetite is the level of risk that customers pose to the bank.
Correct
Partially correct, it also include the level of risk that the bank is willing to assume
Incorrect
Draw (in a festive way) how the concepts of risk tolerance, risk profile, and risk appetite are related.
In what year was the first Rockefeller Center tree placed?
Select the quantitative metrics that could be part of the Risk Appetite Statements for concentration risk
Economic capital ratio per business line
Top 10 clients per exposure
Top 10 clients per exposure
Maximum exposure in a business line
Economic capital ratio
EVA
NPL coverage ratio
Maximum exposure in a business line
Select the correct statements about Risk Appetite and RAS.
The definition of risk limits and tolerance is based always in historical information.
Risk Appetite is formalized in the Risk Appetite Statements.
RAS include metrics on volatility of results, solvency, liquidity, concentration, among others.
A robust RAS has a forward looking view and is subject to stress test if needed.
Risk metrics that could be in the RAS for Solvency.
Risk metrics that could be in the RAS for volatility of results.
Which Christmas movie was a box-office flop when it was first released in theaters?
Star Wars Holiday Special
It is a wonderful life
Life is beautiful
Home Alone
How is the risk profile of the bank determined?
Credit risk level
Operational impact
Control enviroment
Risk level
Operational impact
Control environment
Risk level
Losses
Control environment
Risk level
Risk sensitivity
Control environment
What is the meaning of RIA?
Risk Internally Assessed
Risk Identification Assessment
Risk Identification and Assessment
None of them is correct
Write two risks identified in the RIA (but not credit risk, market risk, or operational risk).
The time horizon for capital planning is typically one year.
Correct, and also for the budgeting
Correct, and the budgeting horizon is two years
Incorrect, its time horizon is two years and the budgeting, one year
Incorrect, its time horizon is never one year, and the budgeting is always one year
If ICAAP is the Internal Capital Adequacy Assessment Process, ILAAP is the Internal (a) Adequacy Assessment Process
The baseline ICAAP scenario coincides with the first year of the _____ and the second and third years of the strategic plan.
stress
business plan
recovery
What is the postal code of Santa in Canada?
(a)
What are the scenarios used in ICAAP?
Baseline
Severly adverse
Idiosyncratic
Baseline
Severely adverse
Idiosyncratic
Reverse
Baseline
Stress
Severly adverse
Idiosyncratic
Baseline
Stress
Idiosyncratic
Reverse
Select the correct answer(s).
The ICAAP is a stress test exercise conducted by the entities
The entities includes all risks considered in Pillar I and Pillar II
The exercise includes quantitative and qualitative assessment of the entities
The quantitative and qualitative results of the ICAAP are considered in the SREP process
Select the correct answer(s).
All statements of the previous question about ICAAP are applicable to ILAAP
The results of the ILAAP are quantitative and qualitative, while the results of the ICAAP are only quantitative
The ILAAP evaluates several pillars including the liquidity and funding risk magement framework, funding strategy, etc.
All are correct
Which songs have been played in space?
Fly me to the Moon
Eclipse
New World Symphony Dvorak
Jingle Bells
Select the incorrect answer(s).
The DFAST is not a stress test process in the US; it refers to the Dodd-Frank Act
Only the US G-SIBs are subject to CCAR and DFAST
The FRB prepares their own models with the bank's data in the CCAR exercise
The CCAR exercise is submitted annually by all banks subject to this requirement
Write two of the entities participating in the DFAST 2024 process with less than 250bn in total assets.
You may like to use: https://www.federalreserve.gov/publications/files/2024-dfast-results-20240626.pdf
In the CCAR/DFAST exercises, what is the stress scenario called?
Adverse
Reverse
Severe stress
Severely adverse
Which of these scenarios is not used in the CCAR/DFAST but it is used in ICAAP?
One stress scenario
One baseline scenario
One reverse scenario
One severely adverse scenario
Which variables will you use to forecast balance sheet and income statements?
What are the main variables projected in the PPNR models?
Provisions
Margins
Volumes
Losses
Select the correct statement(s).
The PPNR models need to incorporate the CECL requirements
The provisions models need to incorporate the CECL requirements
Both the provisions and the PPNR models need to incorporate the IFRS9 requirements
The provisions models do not need to incorporate the IFRS9 requirements in the US perimeter
Thanksgiving OR Christmas
The SREP results serve to the ECB to determine the Pillar II's requirements for the entity.
No, the Pillar II requirements are solely responsibility of the entity
No, although I don't know why it is incorrect
Yes, 100%
I'm not sure what the SREP is, much less what the ECB does with the results
Best Christmas song
The Pillar II requirements ... (select the correct answer(s))
do not substitute the Pillar I requirements
are added to the Pillar I requirements
include the Pillar I requirements
are not based on the SREP results
Your movie for Christmas
How are the strategic exercises related to the SREP?
The SREP evaluation includes the ICAAP and ILAAP results when the business model is assessed
The SREP evaluation includes the ICAAP and ILAAP results, as well as the ST results
The SREP evaluation includes the assessment of the RAS of the entity
The SREP evaluation includes the CCAR/DFAST results
The day in December when you put up the Christmas tree or some sort of decoration
(or maybe you don´t ...)
Your Christmas drink
