Chapter 3 - Supervisory Principles And Practices (2)

Question 1

Risk management

Answer 1

Risk identification

Risk measurement

Risk mitigation

Risk monitoring and reporting

Question 2

Risk mitigation

Answer 2

Avoid

Transfer

Control

Accept

Question 3

People risk

5 main types?

CRIMP

Answer 3

Competence risk

Reward risk

Integrity risk

Motivation risk

Purpose risk (roles and resps)

Question 4

Managing people risk

3 approaches?

SEA

Answer 4

Supportive
Help support facilitate - supervisor as SME

Educational
Tell teach develop

Administrative
Do direct - do what you’re told

Question 5

Performance management

5 steps?

Answer 5

Define strategy

Determine outcomes 
(What do you want to see?)

MI and KPIs

Performance measures

Reward

Question 6

Performance management methods

Name 3

Answer 6

Policy

Balanced scorecards

Dashboard/ heat map - RAG

Question 7

BASEL risk definition

Get it word perfect!!!

Answer 7

Operational risk is ….

Risks that arise from inadequate or failed 
Internal processes
People
Systems or from
External events

Question 8

Three Pillars

Answer 8

Firm systematic framework

Events driven work (thematic)

Issues and products

Resource/time allocated where risk is greatest