This quiz works best with JavaScript enabled. Home > Finance > Risk Management > Operational Risk Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Operational Risk Management Quiz 2 (26 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An increase in Minimum wage may impact a business because ..... A) It will increase total costs of the business. B) It will increase customers. C) It will increase consumer products. D) It will increase profits. Show Answer Correct Answer: A) It will increase total costs of the business. 2. Below are types of loss events except for: A) Potential loss. B) Actual loss. C) Future loss. D) Near miss. Show Answer Correct Answer: C) Future loss. 3. Why should the information be in the right place? A) Costs of future. B) To contribute the productive working relationship. C) Create a backup. D) To make good business decisions. Show Answer Correct Answer: D) To make good business decisions. 4. 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. Show Answer Correct Answer: D) Protect the banking industries. 5. Great communication skills and analytical abilities is an example of a type of A) Threat. B) Opportunity. C) Strength. D) Weakness. Show Answer Correct Answer: C) Strength. 6. What is the purpose of operational risk assessment? A) To identify potential hazards and develop strategies to mitigate them. B) To evaluate the performance of NJROTC Cadets in a drill meet. C) To analyze the financial risks associated with operational activities. D) To assess the environmental impact of operational practices. Show Answer Correct Answer: A) To identify potential hazards and develop strategies to mitigate them. 7. 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. D) None of above. Show Answer Correct Answer: C) The steps that a company puts into place to make sure it is capable of surviving. 8. What is crucial for safely transporting NJROTC cadets to a drill meet? A) Proper training of the cadets. B) The availability of transportation vehicles. C) The weather conditions on the day of the drill meet. D) The distance between the NJROTC unit and the drill meet location. Show Answer Correct Answer: C) The weather conditions on the day of the drill meet. 9. What is tactical risk? A) Dangers and damage when working with your own team and enemies. B) Risk while walking. C) Danger and damage from enemies or adversaries. D) None of above. Show Answer Correct Answer: C) Danger and damage from enemies or adversaries. 10. The Higgins Boat is what type of vessel? A) Fishing boat. B) Yacht. C) Landing craft. D) Submarine. Show Answer Correct Answer: C) Landing craft. 11. 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. Show Answer Correct Answer: D) All of the above. 12. 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. Show Answer Correct Answer: A) Process:Inabsence of dual control function (checker & maker process) for financing. 13. 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. Show Answer Correct Answer: A) Operational process, corporate environment and the affecting factors. 14. The three rules of risk management are A) Profitability-Always reduce risk-Decision making at every level-. B) Gains equal to losses-not taking unnecessary risks-making decisions at a decisive level-. C) Benefits outweigh losses-Don't take unnecessary risks-Make decisions at a decisive level-. D) None of above. Show Answer Correct Answer: C) Benefits outweigh losses-Don't take unnecessary risks-Make decisions at a decisive level-. 15. What is one of the key activities in drill meet preparation? A) Briefing cadets on the schedule and safety protocols. B) Conducting physical fitness training. C) Organizing transportation for the cadets. D) Preparing the drill routines. Show Answer Correct Answer: B) Conducting physical fitness training. 16. The Operational Risk Management Process includes: A) Identification, Control, Measurement, Monitoring. B) Identification, Measurement, Monitoring, Control. C) Identification, Measurement, Control, Monitoring. D) Identification, Monitoring, Control, Measurement. Show Answer Correct Answer: B) Identification, Measurement, Monitoring, Control. 17. Upon detection, all operational risk events, including Shariah Non-Compliance (SNC) are required to be reported within: A) 1 working day. B) 4 working days. C) 3 working days. D) 2 working days. Show Answer Correct Answer: D) 2 working days. 18. Who responsible to manage operational risk? A) Risk Owner and Risk Agent. B) Head of Department/ Branch Manager. C) Chief Risk Officer. D) All Staff. Show Answer Correct Answer: D) All Staff. 19. Which type of operational risk event is the most challenging, namely unexpected loss: A) High frequency / Low impact. B) Low frequency / High impact. C) High frequency / High impact. D) Low frequency / Low impact. Show Answer Correct Answer: B) Low frequency / High impact. 20. Inherent risk is the risk inherent in bank activities. To mitigate inherent risks, banks apply: A) Internal Control. B) Business strategy. C) Marketing strategy. D) Marketing Strategy. Show Answer Correct Answer: A) Internal Control. 21. In the SWOT analysis, Strengths and Weaknesses are what? A) Poor Planning. B) Good Management. C) Internal Factors. D) External Factors. Show Answer Correct Answer: C) Internal Factors. 22. Risk of loss can result from inadequacy or failure of items below, except for: A) Strategy. B) Systems. C) External events. D) Internal control/processes. E) People. Show Answer Correct Answer: A) Strategy. 23. These are the principals of Operational Risk Management processes, except for: A) Mitigate and control. B) Identify. C) Inspect. D) Assess. E) Monitor & report. Show Answer Correct Answer: C) Inspect. 24. One example of operational risk due to process inadequacies is: A) Bank ATMs cannot operate because the electricity is out and the backup generator is not functioning. B) PT XYZ debtor's bad credit because the debtor's business was affected by the COVID 19 pandemic. C) Home Ownership Credit in collaboration with PT XYZ is stuck because there is no MOU with PT. D) Bank X suffered losses due to the increase in BI's benchmark interest rate. Show Answer Correct Answer: C) Home Ownership Credit in collaboration with PT XYZ is stuck because there is no MOU with PT. 25. Changes in demographics results in shifting demand away from products, this is classified as a A) Opportunity. B) Threat. C) Weakness. D) Strength. Show Answer Correct Answer: B) Threat. 26. What is the role of BUSINESS SUPPORT UNIT in Operational Risk Management? A) Co-ordinate, facilitate, assess and oversee the effectiveness and integrity of risk management and update Board and Management on risk related matters on timely basis. B) Responsible for the management and control of day to day operational risk. C) Provide independent assurance across all business functions in respect of the effectiveness of the risk management framework. D) None of above. Show Answer Correct Answer: B) Responsible for the management and control of day to day operational risk. ← PreviousRelated QuizzesFinance QuizzesOperational Risk Management Quiz 1Credit Risk Management QuizEnterprise Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books