Chapter 4

Question 1

People

Process

Answer 1

Hazard Risk/ Insurable Risk Like Wells Fargo 
Adaptable Changes according to People need
Errors and Omission
Mitigate Process : 
1 Recruitment 
2 Selection
3 Training and Development 
4 Performance Management 

Proceedure and practises and organization use to conduct their business activities

Question 2

Operational Risk Indicator

Answer 2

1 Issue before risk, incident and after the losses

2 Key Risk Indicator

Question 3

Exposure Indicator

Answer 3

Control Indicator

Question 4

VAR

EAR

Answer 4

Its measure of probability of loss in an investment value exceeding the threshold value
1 Potential losses will be quantified
2 Complex figure are expressed as single figures
3 Loss is expressed in monetary figures

Question 5

Regulatory Capital

Answer 5

Reserve in Bank to protect from Losses

Basel 1 :

Question 6

Equity Capital

Answer 6

Capital Consist of Stocks, Common Stocks, Capital Reserve and Net unrealised holding gains on securities that are not available for sale

Question 7

Supplementary capital

Answer 7

Gains on Investment, Long Term Debt matures in More than 5 years
Excess REserve Loans for losses
Short Term unsecured debts

Question 8

Solvency 2

Answer 8

The amount required for solvency
Supervision
Transparency