This quiz works best with JavaScript enabled. Home > Risk Management > Operational Risk Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Operational Risk Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following risk statement is catagorized as operational risk ..... A) PEOPLE RISK. B) SYSTEM RISK. C) PROCESS RISK. D) ALL THE STATMENTS. Show Answer Correct Answer: D) ALL THE STATMENTS. 2. To express Operational risk, below statement is FALSE ..... A) They are defined in clear & specific sentence (not more than 10 words). B) Understandable for people with different background. C) Verb Form. D) Avoid specific technical terms/ jargon and avoid abbreviation. Show Answer Correct Answer: C) Verb Form. 3. If the Operational Risk event could not be reported in OpRisk System timely due to system unavailability, Operation Risk Coordinator (ORC) is required to: A) Do nothing. B) Complete the OPERATIONAL RISK EVENT REPORTING FORM and forward it to Group Internal Auditors. C) Complete the OPERATIONAL RISK EVENT REPORTING FORM and forward it to Bank Negara Malaysia. D) Complete the OPERATIONAL RISK EVENT REPORTING FORM and forward it to Group Operation Risk Management. Show Answer Correct Answer: D) Complete the OPERATIONAL RISK EVENT REPORTING FORM and forward it to Group Operation Risk Management. 4. Regarding Risk Loss and Risk Event, which of the following sentences is incorrect: A) Risk loss occurs because of a risk event. B) Risk loss can have both financial and non-financial impacts. C) Risk events occur because of risk loss. D) Risk loss can have an impact on direct or indirect losses. Show Answer Correct Answer: C) Risk events occur because of risk loss. 5. Percentage of debtors with loan age < 6 months collectibility 2 (Special Mention). This is example data: A) Indication of Fraud Events. B) Loss Event Data. C) Risk & Control Self Assesssment. D) Key Risk Indicators. Show Answer Correct Answer: D) Key Risk Indicators. 6. The following is the most appropriate statement to explain KRI. A) KRI is the same as Key Performance Indicators (KPIs). B) KRI provides early warnings to identify potential events that could disrupt the continuity of an activity/project. C) KRI measures qualitative operational risk. D) KRI measures the risk exposure faced by banks. Show Answer Correct Answer: B) KRI provides early warnings to identify potential events that could disrupt the continuity of an activity/project. 7. The risk is A) Loss and quality of danger or adverse consequences. B) The chance of good or good results. C) The possibility of danger or bad consequences. D) None of above. Show Answer Correct Answer: C) The possibility of danger or bad consequences. 8. What is BCM? A) Business Compliance Management. B) Business Contingency Management. C) Banking Continuity Management. D) Business Continuity Management. Show Answer Correct Answer: D) Business Continuity Management. 9. Which one of the following Risk Management is true:(1) Create and Protect Value(2) Integral parts of Organizational process(3) Part of decision making(4) Inclusive and flexible approach A) All statement are true. B) Only (1) AND (2). C) (1), (2) and (3). D) (1) and (3). Show Answer Correct Answer: C) (1), (2) and (3). 10. Hazard is A) A situation that could damage or interfere with the mission. B) A situation that does not cause damage or interference to people, property and the mission. C) A situation that could damage or interfere with people, property and the mission. D) None of above. Show Answer Correct Answer: C) A situation that could damage or interfere with people, property and the mission. 11. What are some notable accomplishments of Henry Kissinger? A) Negotiating the Paris Peace Accords to end the Korean War, receiving the Nobel Peace Prize for his efforts in ending the Korean War, playing a key role in the establishment of diplomatic relations between the United States and Russia, and serving as the United States Secretary of State under Presidents John F. Kennedy and Lyndon B. Johnson. B) Negotiating the Paris Peace Accords to end the Vietnam War, receiving the Nobel Peace Prize for his efforts in ending the Vietnam War, playing a key role in the establishment of diplomatic relations between the United States and China, and serving as the United States Secretary of State under Presidents Richard Nixon and Gerald Ford. C) Negotiating the Paris Peace Accords to end the Cold War, receiving the Nobel Peace Prize for his efforts in ending the Cold War, playing a key role in the establishment of diplomatic relations between the United States and North Korea, and serving as the United States Secretary of State under Presidents Jimmy Carter and Ronald Reagan. D) Negotiating the Paris Peace Accords to end the Gulf War, receiving the Nobel Peace Prize for his efforts in ending the Gulf War, playing a key role in the establishment of diplomatic relations between the United States and Iraq, and serving as the United States Secretary of State under Presidents George H. W. Bush and Bill Clinton. Show Answer Correct Answer: B) Negotiating the Paris Peace Accords to end the Vietnam War, receiving the Nobel Peace Prize for his efforts in ending the Vietnam War, playing a key role in the establishment of diplomatic relations between the United States and China, and serving as the United States Secretary of State under Presidents Richard Nixon and Gerald Ford. 12. 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. Show Answer Correct Answer: C) At the first initial strategic plan. 13. Risk identification is carried out by analyzing all sources of risk from the Bank's products and activities, taking into account: A) Functional activity coverage. B) Measurements to be taken. C) Risk Appetite dan Risk Tolerance. D) The sensitivity of the product/activity to the factors that influence it. Show Answer Correct Answer: A) Functional activity coverage. 14. 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. Show Answer Correct Answer: B) It will increase total costs of the business. 15. Below are types of loss events except for: A) Future loss. B) Potential loss. C) Near miss. D) Actual loss. Show Answer Correct Answer: A) Future loss. 16. 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. Show Answer Correct Answer: B) To make good business decisions. 17. 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. 18. Great communication skills and analytical abilities is an example of a type of A) Strength. B) Weakness. C) Opportunity. D) Threat. Show Answer Correct Answer: A) Strength. 19. 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. 20. 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. ← PreviousNext →Related QuizzesOperational Risk Management Quiz 1Operational Risk Management Quiz 3Credit Risk Management QuizEnterprise Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books