CPG 3

Question 1

Where a temporary overdraft accommodation remains outstanding for longer than 30 days it shall be classified as a past due loan.

Answer 1

TRUE

Question 2

According to the CPG, for obligor to whom we have extension of credit, there will be several approvals across the bank towards problem recognition, the classification of problem exposure and remedial action

Answer 2

FALSE

Question 3

Credit portfolio risk limits may be proposed by credit Management and approved by Management credit committee

Answer 3

FALSE

Question 4

In order to ensure transparency of risks taken, it is the responsibility of Relationship Management to accurately, completely and in a timely fashion, report the comprehensive set of credit risk data into the independent risk reporting system

Answer 4

FALSE

Question 5

Settlement risk occurs when there is a simultaneous exchange of value with a counter party for the same value date and verification that payment is received is not made until after the bank has paid / delivered on the obligation

Answer 5

TRUE

Question 6

While considering settlement risk, there is also a risk that the counter party does not deliver at all and as such resulting in exposure of the bank to direct lending risk

Answer 6

TRUE

Question 7

Clearing risk is the risk that the bank may be reimbursed on another value date for payments made on behalf of customers

Answer 7

TRUE

Question 8

Documentation risk is the risk that documentary evidence on which the bank depends to enforce rights under contracts or transactions will not be complete, covered and enforceable

Answer 8

TRUE

Question 9

Legal and regulatory risks may occur when the Bank, a related corporate entity, a transaction or a customer is subject to a change in exposure resulting from legal or criminal sanctions or litigations

Answer 9

TRUE

Question 10

Liquidity risk is the risk that the bank will be able to meet all of its financial commitments to
customers and markets when due

Answer 10

FALSE

Question 11

Under the CPG, it is the responsibility of Management and Board of Directors to ensure the
integrity of the credit process and proper documentation of credit decision

Answer 11

FALSE

Question 12

The level of authority required to approve credit will decrease as amounts and transaction
risks decreases and as risk ratings improves

Answer 12

TRUE

Question 13

The CPG proposes a system of multiple standards for the measurement of credit risk in order
to ensure consistency across business, stability in methodologies and transparency of risk

Answer 13

FALSE

Question 14

Contingent lending risks may occur in products ranging from letters of credit to guarantees to
unusual commitments

Answer 14

TRUE

Question 15

Direct lending risk exists for the entire life a transaction

Answer 15

TRUE

Question 16

Contingent lending risk exists for the entire life of the transaction

Answer 16

TRUE

Question 17

Country risk events may include political events

Answer 17

TRUE

Question 18

Tentative action shall be taken on a reactive basis to minimize the bank`s loss on a non-performing asset

Answer 18

FALSE

Question 19

Under the CPG, approval credit product programs shall demonstrate that the behavior of the
portfolio will not be predictable

Answer 19

FALSE

Question 20

Individual credits are applicable in respect of facility request and credit approvals for
customers who do not fit into credit product programmes and product offerings

Answer 20

TRUE

Question 21

Individuals / business credits are suitable for which, if any, of the under listed

Answer 21

Any of above

Question 22

Is it right to state that some credit activities in the Retail Banking business unit may be
categorized as individual /business credits

Answer 22

FALSE

Question 23

The board credit committee is the highest credit approval body in the bank and is responsible
for approval of credit beyond the authorized approval limit

Answer 23

FALSE

Question 24

The criticized assets committee is headed by GDMD and is convened once every month to
review all qualifying assets and take decision on remedial action and / or provisionary

Answer 24

FALSE

Question 25

The Board credit committee is headed by the GMD and by the GDMD in his absence

Answer 25

FALSE

Question 26

Loans that show little or no movement during their tenor or which fail to be liquidated on due
date are to be regarded as delinquent

Answer 26

FALSE

Question 27

The decision to transfer non-performing facility to the remedial assets Management unit is
normally taken at Management credit committee meetings

Answer 27

FALSE

Question 28

In some instances where it is determined that the probability of turnaround of a facility
performance is remote, such facility may be immediately classified as lost

Answer 28

FALSE

Question 29

Under which of the under listed instances will a facility be classified lost

Answer 29

death/disappearance of obligor

Question 30

Generally, recovery action may be instigated at any point in time in the life of a credit exposure

Answer 30

FALSE

Question 31

In the event of recovery, the bank`s entitlement shall be limited to the full amount of principal and interest unpaid to date of recovery

Answer 31

FALSE

Question 32

Where sale proceeds from realizing a collateral security falls short of the bank`s entitlement, the difference may be forgiven the customer

Answer 32

FALSE

Question 33

The relationship Manager is responsible for bringing in industry, prudent and other specialists (e.g., Legal, Tax) when required

Answer 33

TRUE

Question 34

Risk Management policies are approved by the Board Credit committee to enable informed decision making and approval, and establish / maintain an appropriate environment for risk
Management

Answer 34

FALSE

Question 35

Compliance with the CPG shall be monitored on an ongoing basis by Credit Risk Management and reported on a quarterly basis to the MCC

Answer 35

TRUE

Question 36

Regardless of Risk Rating Limits, Legal Lending Limits will always prevail

Answer 36

TRUE

Question 37

Exposure against Risk Rating Limits may be measured as the outstanding and unusual
commitments (OSUC) to a relationship

Answer 37

TRUE

Question 38

OSUC to a given relationship does not include settlement and clearing exposure, or the underwritten position of a credit under listing transaction unless the position becomes aged beyond the extension period

Answer 38

TRUE

Question 39

What level of approval is required for Cash Exception

Answer 39

Line ED/Head CRM

Question 40

What level of approval is required for Immaterial Exceptions

Answer 40

Line ED/Head CRM

Question 41

What level of approval is required for Passive Exception

Answer 41

Line ED/Head CRM

Question 42

What level of approval is required for Long-term conditioning

Answer 42

MCC

Question 43

An approved Risk Rating Limit exception does not need to be re-approved during the annual review process

Answer 43

TRUE

Question 44

Risk management policies shall be approved by the Board of Directors to enable informed decision making and approval, and establish/maintain an appropriate environment for risk management in the bank

Answer 44

TRUE

Question 45

The Management Credit Committee (MCC) shall consider facility proposals in excess of the highest individual credit authority limit. Facility proposals that exceed the approval authority of the MCC shall be approved by The Board Credit Committee on behalf

Answer 45

TRUE

Question 46

All appointments and designations for credit risk approval, as well as corresponding credit limits, must be reviewed and re-approved by the Head of Credit Risk Management at least twice a year.

Answer 46

TRUE

Question 47

Each customer facing business unit need not maintain up to date records of credit approval authority delegated to approving officers

Answer 47

FALSE

Question 48

Credit programs shall be primarily defined to accommodate credit offerings where there is business opportunities that such will address for groups or groups of customers with homogenous business fundamentals and/or profiles such that their financial needs are better met through a common approach

Answer 48

TRUE

Question 49

Approvals under credit programs need not be within approved global exposure and maximum individual exposure limits and shall be exercised within the market facing business units, subject to approval limits as may be set by the bank for each product program

Answer 49

TRUE

Question 50

To provide flexibility in managing valued customer relationships, especially for specific Institutional banking customers that satisfy at the minimum, the criteria for the best risk rating, the bank shall approve guidance limits. These shall be pre-approved exposure limits which shall immediately upon approval be advised to the customer but available to allow for
quick response to temporary emergency needs for accommodation / enhancement of facilities.

Answer 50

TRUE

Question 51

Unusual risk policies approved by MCC is limited to, the following: Exposure to director
related accounts; Exposure to politicaly exposed entities and Exposure to gambling entities

Answer 51

FALSE

Question 52

All unusual/special risks shall require approval at Management Credit Committee / Board
Credit Committee or Board of Directors subject to applicable limits

Answer 52

FALSE

Question 53

Any increases to Total Facilities, whether caused by new facilities or increases to existing
facilities, must be approved, based on the new Total Facilities amount, as per the Credit
Facility Approval Grid

Answer 53

TRUE

Question 54

Availments under approved credit facilities shall be through drawdown memorandum
approved by an officer in Credit Risk Management only

Answer 54

FALSE

Question 55

Availments under approved credit facilities shall be through drawdown memorandum
approved by an officer in Credit Risk Management and an officer in Legal Department, who
will verify that all conditions precedent to drawdown have been met.

Answer 55

TRUE

Question 56

Drawdown on facilities classified substandard shall be through drawdown memorandum
approved by an officer in Credit Risk Management and an officer in Legal Department, who
will verify that all conditions precedent to drawdown have been met

Answer 56

TRUE

Question 57

Drawdown of facilities classified doubtful and worse need not be approved by the Head of
Credit Risk Management at a minimum

Answer 57

FALSE

Question 58

When an established credit facility undergoes a material change in terms, tenor or conditions
(with materiality determined by the Head of Credit Risk Management), Total Facilities must
be re-approved, in accordance with the Credit Facility Approval Authority

Answer 58

TRUE

Question 59

When the amount of a credit facility is reduced or cancelled, or the tenor is shortened, the
Relationship Manager / Originating Officer must promptly advise the applicable credit
administration area, in writing, that the credit systems be updated to reflect the changes

Answer 59

TRUE

Question 60

Four officers from the business unit may approve any reallocation or sub allocation from an
approved facility, where the obligor, Exposure Type (Direct, Contingent) and tenor are pre-established, in order to establish or increase another facility under the following conditions

Answer 60

FALSE

Question 61

If a reallocation or sub-allocation is for a related obligor of equivalent or better risk rating
within the same client relationship, and the last three conditions are met, then two business
credit officers may approve reallocations sub-allocations, one of whom must be the
responsible business Group Head

Answer 61

TRUE

Question 62

Upon confirmation of full repayment of the credit facility and liquidation of the bank`s
exposure, all collateral, guarantee or support for any type of credit transaction shall be
released to the customer in accordance with agreed terms and conditions

Answer 62

TRUE

Question 63

The release of collateral, guarantees or support for any type of credit transaction requires the
following approvals: · Before the corresponding commitment is cancelled or repaid, the
Managing director must determine if the release of the collateral, guarantee or support
constitutes a material change in the risk of the transaction. if so, then the transaction must be
re-approved, based on the credit facility approval grid

Answer 63

TRUE

Question 64

Requests to waive or amend the provisions contained in existing credit agreements must be
considered carefully, as they may be a critical component of problem identification and
remedial management activities. Such requests must be approved by the responsible business
Ed and in accordance with the Credit Approval Grid, but not to exceed the Group MD/CEO
limit for credits. Any waiver or ammendments for facilities above that must be approved by
GDMD/GMD

Answer 64

TRUE

Question 65

Amendments to credit agreements, such as the lengthening of tenor, increasing facility
amount, or material relaxation of collateral structure, do not require full credit approval of
Total Facilities, in accordance with the Credit Approval Grid

Answer 65

FALSE

Question 66

Under no circumstance can the periodic review be temporarily extended

Answer 66

FALSE

Question 67

All credit facilities must be reviewed once every 12Months

Answer 67

TRUE

Question 68

All credit facilities must be reviewed once every 12 Months. However the periodic review
may be temporarily extended for up to 60 days with approval of the Business ED and the
Head of Credit Risk Management. Extensions beyond 60 days, up to 90 days, must be
approved by the GMD/CEO (or designee)

Answer 68

FALSE

Question 69

In cases where there has been a review extension the annual review date may then be reset, as
one year from the approved extension date

Answer 69

TRUE

Question 70

Under no circumstance are unaudited financial statements acceptable in the annual review
process

Answer 70

FALSE

Question 71

When Access Bank underwrites and distributes any loans or debt instrument The Hold
Position is the amount that Access Bank intends to retain

Answer 71

TRUE

Question 72

When Access Bank underwrites and distributes any loans or debt instrument The
Underwritten Position is the amount Access Bank commits to purchase and distribute to
investors

Answer 72

TRUE

Question 73

When Access Bank underwrites and distributes any loans or debt instrument The Total
Position is the sum of Access Bank`s Hold and Underwritten Positions

Answer 73

TRUE

Question 74

When Access Bank underwrites and distributes any loans or debt instrument The Total
Position is the amount that Access Bank intends to retain

Answer 74

FALSE

Question 75

When Access Bank underwrites and distributes any loans or debt instrument The Hold
Position is the amount Access Bank commits to purchase and distribute to investors

Answer 75

FALSE

Question 76

When Access Bank underwrites and distributes any loans or debt instrument The
Underwritten Position is the sum of Access Bank`s Hold and Underwritten Positions

Answer 76

FALSE

Question 77

All Credit Programs for Credit Underwriting must be approved in line with the Credit
Approval Authority grid

Answer 77

FALSE

Question 78

Credit underwriting and distribution requires the approval of individuals with highly
specialized market skills and specific product expertise

Answer 78

TRUE

Question 79

The level of approval in credit underwriting does not depend upon the amount and facility
risk rating

Answer 79

FALSE

Question 80

One off transactions (i.e., those done outside a Credit Program) also require approval in line
with the Credit Approval Authority grid

Answer 80

TRUE

Question 81

The Hold Position is subject to credit approval in accordance with the Credit Facility
Approval Authority Grid. This Hold Position amount must be aggregated with other credit
exposures for the relationship, and need not be included in Total Facilities

Answer 81

FALSE

Question 82

Each Credit Program must have an approval process for the Underwritten Position that
specifies approval levels as a function of the size of the underwriting. But the Underwritten
Position, during its defined distribution period, need not be captured by the market risk /
issuer risk reporting and limit framework

Answer 82

FALSE

Question 83

Each Credit Program must have an approval process for the Total Position that specifies
approval levels as a function of the size of the Total Position

Answer 83

TRUE

Question 84

In Best Efforts Undertakings, Access Bank agrees to use its best efforts to place loans or
securities with investors

Answer 84

TRUE

Question 85

Although distribution efforts are similar to an underwriting, a Best Efforts undertaking also
entails a legal commitment to fund any distribution shortfall. However, there is risk here in
the franchise damage associated with a failed undertaking

Answer 85

FALSE

Question 86

Best Efforts Undertakings should either have a specific approval process, documented as part
of a Credit Program, or the total amount of the undertaking must be approved pursuant to
credit underwriting requirements

Answer 86

TRUE

Question 87

In Assignments and Participations the distribution of Underwritten Position is normally
accomplished by assignments, in which an investor assumes his pro rata share of a transaction
on a full risk basis, with no recourse or future funding risk to the underwriter

Answer 87

TRUE

Question 88

Unfunded participations entail counterparty funding risk, in that, should the participant fail to
fund, Access Bank is not obligated. Therefore, any unfunded portion of a transaction sold by
participation does not require credit approval as an increase to the issuer hold position

Answer 88

FALSE

Question 89

With regards to Documentation Requirements Underwriting commitment need not follow
Commitment Letter standards

Answer 89

FALSE

Question 90

Each underwriting and distribution must have a Defined Distribution Period that cannot
exceed 180 days, unless otherwise specified in advance as part of the original transaction
approval

Answer 90

FALSE

Question 91

Distribution period begin For loans - when the issuer accepts Access Bank`s commitment,
either verbally or in writing. And For securities - on the date the price is set

Answer 91

TRUE

Question 92

The distribution is completed when another party contractually assumes Access Bank`s
commitment or purchases the asset

Answer 92

FALSE

Question 93

Even though another party contractually assumes Access Bank`s commitment or purchases
the asset the distribution is in complete

Answer 93

FALSE

Question 94

If an Underwritten Position is not completely sold within the Defined Distribution Period
(usually 90 days), the amount remaining is considered Aged Inventory and must be marked to
market

Answer 94

TRUE

Question 95

All Access Bank employees involved in the creation and management of risk exposures shall
comply at all times with the risk management policies, and procedures as approved

Answer 95

TRUE

Question 96

Compliance shall be monitored on an ongoing basis by the bank`s Internal Audit Unit and reported on a quarterly basis to the Board of Directors

Answer 96

FALSE

Question 97

The risk management unit shall have specific and overall responsibility for ensuring
compliance with the Risk management Policies and procedures

Answer 97

TRUE

Question 98

The Legal Unit shall have specific and overall responsibility for ensuring compliance with the
Risk Management Policies

Answer 98

FALSE

Question 99

The following constitute the pillars of Access Bank`s credit policies and procedures: (Select
the inappropriate item)

Answer 99

Credit Official Policy

Question 100

Risk Rating Limits Policy - Every extension of credit must be approved in line with the approval requirements stated in this policy. Credit Risk Management must sign off on all extension of credits for the credit approval to be valid

Answer 100

FALSE

Question 101

Credit Approval Policy - Access Bank shall utilize Risk Rating Limits to maintain a diversified portfolio of risk asset

Answer 101

TRUE

Question 102

Specific Risk Policy - Certain extensions of credit have incremental or unique approval and risk management requirements or may be prohibited altogether

Answer 102

TRUE

Question 103

Credit Program Policy - Credit programs will be used to document business specific credit approval or risk management requirements, and are approved identically to extensions of credit

Answer 103

TRUE

Question 104

Annual Review Policy - There will be consistent credit analysis standards across Access Bank, for the approval of credit facilities

Answer 104

FALSE

Question 105

Credit Analysis Policy - All credit files must be maintained and reviewed at least once every 12 months

Answer 105

FALSE

Question 106

The following are the rules governing the extension of credit, one of the items does not belong

Answer 106

Official Credit Policy

Question 107

Risk Rating Limits, shall always prevail over Legal Lending Limits set by the Regulators

Answer 107

FALSE

Question 108

Section 20 (1a) of the Bank and Other Financial Institutions Act (BOFIA) 1991 as amended states that a Bank shall not grant more than 50% of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associates

Answer 108

FALSE

Question 109

What concept describes the BOFIA requirement that a Bank shall not grant more than 20% of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associate

Answer 109

One Obligor Limit

Question 110

At Access Bank, the concept of one obligor is extended to include any company belonging to a group whose management are strongly linked by virtue of their related ownership structure and in particular, where the business fortune of one entity affects the other. Thus credits extended to any member of the group shall be aggregated to determine total facilities to the group, as well as the appropriate level of approval of such facilities

Answer 110

TRUE

Question 111

With regards to the one obligor limit It shall be the responsibility of the Board of Directors to determine whether related company obligations shall be aggregated, and the basis for their decision shall be documented

Answer 111

FALSE

Question 112

Listed is the guide, to determining the One Obligor Is there any item listed that is
inappropriate and should be excluded

Answer 112

All sub at least 80%

Question 113

For the purposes of applying Risk Rating Limits, the obligor risk rating that is used must be

Answer 113

All of the above

Question 114

At Access bank, Exposure against Risk Rating Limits is measured as the Outstandings and Unused Commitments (OSUC) to a given relationship

Answer 114

TRUE

Question 115

Outstandings and Unused Commitments OSUC are the sum of all Outstandings (including Direct and Contingent Exposure) against Total Facilities, as well as the unused portion of any Committed Facility included in Total Facilities

Answer 115

TRUE

Question 116

Which of the under-listed statements is correct

Answer 116

Outstandings and Unused Commitments OSUC do not include settlement and clearing exposure or the Underwritten Position of a credit underwriting transaction

Question 117

Which of the under-listed statements is incorrect

Answer 117

Risk Rating Limit Exceptions are encouraged but must be approved in advance at the appropriate level

Question 118

Approval for a Risk Rating Limit Exceptions is determined by the RRLE type

Answer 118

TRUE

Question 119

Types of Risk Rating Limit Exceptions include the following except

Answer 119

Long Term & Continuing

Question 120

Limit exceptions, defined as overages up to 10% of Risk Rating Limit. Is a material exception

Answer 120

FALSE

Question 121

Passive exceptions may be caused by

Answer 121

A valuation change on an existing transaction

Question 122

Passive exceptions need not be pre-approved, instead, they are flagged as part of the regular reporting process, and must be reviewed and their associated action plan must be approved as soon as possible after they occur, (but no later than the next quarterly review of Risk Rating Exceptions)

Answer 122

TRUE

Question 123

Passive exceptions must be pre-approved, and need not be flagged as part of the regular reporting process, nor reviewed. Whilst their associated action plan also need not be approved as soon as possible (Can be later than the next quarterly review of Risk Exceptions)

Answer 123

FALSE

Question 124

Cash, Immaterial and Passive Risk Rating Limit Exceptions (RRLEs) require approval from Line ED and Head of Credit Risk Management (or their designees)

Answer 124

TRUE

Question 125

All Risk Rating Limit Exceptions apart from Cash, Immaterial and Passive exceptions require approval by MCC

Answer 125

TRUE

Question 126

Cash, Immaterial and Passive Risk Rating Limit Exceptions RRLEs require approval by MCC

Answer 126

FALSE

Question 127

All other RRLEs apart from Cash, Immaterial and Passive exceptions require approval from Line ED and Head of Credit Risk Management (or their designees)

Answer 127

FALSE

Question 128

During the annual review all Risk Rating Limit Exceptions must be noted on the Facility Approval Memo

Answer 128

TRUE

Question 129

Under-listed are the steps in the credit approval process select the inappropriate item in the group

Answer 129

Step 1: Visit Customers Site

Question 130

A proposal or marketing letter requires credit approval even though it expressly disclaims any commitment or any undertaking to provide a commitment or other services, and does not obligate Access Bank in any way

Answer 130

FALSE

Question 131

Marketing letters will be jointly approved by the business head or ED and the Head of Credit Risk Management)

Answer 131

TRUE

Question 132

Marketing letters must be jointly approved by the MCC and the managing Director

Answer 132

FALSE

Question 133

When establishing Total Facilities for a relationship, Total Facilities must include the under listed select the inappropriate item:

Answer 133

The borrowers business description

Question 134

The level of authority required for approval is a function of the Total Facilities amount

Answer 134

TRUE

Question 135

The level of authority required for approval can be found on the Credit Facility Approval Grid

Answer 135

TRUE

Question 136

All extensions of credit in the bank need not be approved in compliance with the Credit Risk Management Policy Guide

Answer 136

FALSE

Question 137

Extensions of credit facilities in the regions need not have the concurrence of the Head of Credit Risk in the Regional Office but requires the approval of an officer of the bank with a covering credit approval limit

Answer 137

FALSE

Question 138

Which of the under-listed statements is correct

Answer 138

No credit exposure shall be created on the judgment or at the discretion of a single bank officer acting independently. All extensions of credit or In

Question 139

Approval Authority shall be in line with delegated credit approval authority limits at the Board Credit Committee, Management Credit Committee (MCC) or designated bank officers.

Answer 139

TRUE

Question 140

An obligor shall represent all related parties that are associated/belong to the same group of companies whose management are strongly linked or share the same ownership. Exposures to any such obligor shall be aggregated to determine the level of Access

Answer 140

TRUE

Question 141

Which of the under-listed statements is correct

Answer 141

By definition and for the purpose of credit creation at Access Bank, a group of companies shall exist where one or more of the shareholders of the company

Question 142

The following have individual levels for credit approval within the bank except

Answer 142

RM

Question 143

Credit approval authority shall be approved by the Group Managing Director/CEO based on delegation by the Board of Directors, on the recommendation of Business EDs and Head of Credit Risk Management

Answer 143

TRUE

Question 144

Risk management is the responsibility of

Answer 144

All of the above

Question 145

_____ attention shall be paid to quantifiable and non-quantifiable risks

Answer 145

Particular

Question 146

Before granting credit to an individual or sole proprietor you must do all the following except

Answer 146

Having a personal relationship with the client

Question 147

Individuals or business credit must be secured by all the following except

Answer 147

Relevant past history with the Bank

Question 148

Unsecured loans to individuals or organisation, other than to members of staff of the Bank, shall require

Answer 148

GMD/GDMD’s approval irrespective of the amount involve (in addition to other approvals that may be required)

Question 149

Which of the following is not a type of Credit Exposures

Answer 149

Legal Commitments

Question 150

A credit extension made known to the borrower and to which the Bank is committed (As long as the borrower fulfils prior conditions) is

Answer 150

An advised facility

Question 151

Acceptance of an advised credit by a corporate client must be supported by a ________, among other requirements of the facility terms

Answer 151

Board Resolution

Question 152

The tenor of revolving credits must not exceed

Answer 152

3 years

Question 153

To manage the Bank`s exposure effectively, an Account Officer may choose not to advise the full amount of the facility available for a client. This may be done for one of the following reasons

Answer 153

As a marketing tool

Question 154

An Overdraft (OD) is a line of credit that allows a customer write cheques for _______ the actual balance on the account with a finance charge on the excess

Answer 154

more than

Question 155

Ideally, the use of an OD should be restricted to

Answer 155

Working capital requirements

Question 156

Before granting an OD, It is imperative for an account officer to study the client`s business and satisfy himself as to which of the following:

Answer 156

All of the above

Question 157

For customers wishing to draw against confirmed drafts (DAUD or DAUE), the facility shall be approved for

Answer 157

The tenor the draft is in clearing

Question 158

The tenor of the Revolving Credit must not exceed

Answer 158

Three years

Question 159

The bank will only go into warehouse financing where:

Answer 159

All of the above

Question 160

Where a warehouse financing facility is granted which of the following is necessary to be done:

Answer 160

All of the above

Question 161

What is the maximum tenure of a time loan

Answer 161

one year or less

Question 162

What is the maximum tenor of a term loan

Answer 162

7 years

Question 163

Where a financing request or risk is too large for one Bank, two or more Banks may jointly provide financing. The Bank shall be willing to participate in Syndications led by other Banks subject to:

Answer 163

Syndicated facility being subject to the same high standards of credit analysis, documentation, etc

Question 164

These are exceptional or unsecured credit extensions to certain companies and/or
individual having special relationships with the Bank, some of which are already subject to certain restrictions by law except:

Answer 164

Loans to staff of the bank

Question 165

Agricultural loans are one of the most complex and high risk loans the Bank can grant. Appraisal of all Agricultural loans must take account of:

Answer 165

All of the above

Question 166

The Bank may extend credit for specific agricultural ventures: provided that:

Answer 166

The bank receives acceptable guarantees from public or private sources external to the project

Question 167

Advance Payment, Bid Bonds and Guarantees should contain all of the following elements except:

Answer 167

The Bank may not charge fee for its issuance

Question 168

What is the maximum tenor for placements with approved banks

Answer 168

360 days

Question 169

What is the nature of the limit that the CPG imposes on the bank concerning takings
from other bank

Answer 169

None

Question 170

Access Bank policy will be not to finance Armament loans and Gambling loans in any form. What exceptions, if any, exist in the CPG

Answer 170

Board of Directors must approve

Question 171

Section 20 (1a) of the Banks and Other Financial Institutions Decree (BOFID) 1991 states that a Bank shall not grant more than ______ of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associates

Answer 171

0.2

Question 172

The concept of one obligor is taken further to include any company belonging to a group whose management are linked by virtue of their related ownership structure and in particular, where the fortune of one entity can readily pass to the other

Answer 172

TRUE

Question 173

As a guide, the term One-obligor to a borrower includes All subsidiaries owned at least 50%; such interest to be an aggregate of both direct and indirect shareholding

Answer 173

TRUE

Question 174

As a guide, the term One-obligor to a borrower includes Any less than 50% owned affiliate where the borrower exercises management control. Also where, in the opinion of the lending officer, the commercial fortunes of the affiliate are strongly influenced by the borrower

Answer 174

TRUE

Question 175

As a guide, the term One-obligor to a borrower includes Any obligor related to the borrower as a result of guarantees, endorsements, or other similar arrangements in favor of the Bank

Answer 175

TRUE

Question 176

As a guide, the term One-obligor to a borrower includes All obligor under common ownership or control of a corporation or individual

Answer 176

TRUE

Question 177

What is the current approval limits for Executive Directors

Answer 177

75 million

Question 178

What is the current approval limits for Group Deputy Managing Director

Answer 178

150 million

Question 179

What is the current approval limits for Group Managing Director

Answer 179

200 million

Question 180

What is the current approval limits for Management credit committee

Answer 180

500 million

Question 181

What is the current approval limits for Board credit Committee

Answer 181

6 billion

Question 182

What is the current approval limits for Board of Directors

Answer 182

Above 6 billion

Question 183

There is no limit to the amount of credit which may be approved by the Board of directors provided the credit conforms to the CPG and statutory lending limit

Answer 183

TRUE

Question 184

The management Credit Committee is responsible for reviewing and approving all credits that are above the level of the managing Director i.e. the committee shall review and approved extensions of credit, including one-obligor commitments, that exceed N200 Million

Answer 184

FALSE

Question 185

The Management Credit Committee shall meet at least at once a month

Answer 185

FALSE

Question 186

For an MCC meeting, The Chairman or Vice Chairman, the Secretary and at least 2 other members shall form a quorum.

Answer 186

FALSE

Question 187

In the absence of the Group Managing Director, The GDMD automatically assumes the leading limit of the GMD

Answer 187

FALSE

Question 188

Recommendation and approval of facilities shall be by a minimum of ______Credit
Officers, at least one of which must have the authority to approve the recommended amount

Answer 188

3

Question 189

The bank`s pricing strategy shall be based on the following except

Answer 189

Customers ability to pay

Question 190

Which of the following is not a consideration in ascertaining the margins to be applied in estimating lending rate:

Answer 190

Size of the customer

Question 191

What is the purpose of risk management policies

Answer 191

None

Question 192

Risk management policies may play a role in ensuring optimal customer satisfaction
while maintaining a sound risk asset portfolio

Answer 192

TRUE

Question 193

Which one of the following does not form a critical part of the Bank`s risk management policy

Answer 193

None

Question 194

Once an underwriting becomes Aged Inventory, a memorandum, specifying the Extension Period (usually an additional 90 days), and describing an action plan or alternate strategy and the Mark to market methodology, must be prepared by Investment Banking Division

Answer 194

TRUE

Question 195

The process to approve an Aged Inventory memorandum must be documented as part of the Credit Program. Required approvers must include a business ED and the Head of Credit Risk Management

Answer 195

TRUE

Question 196

All Aged Inventory positions must be reported at least monthly to the GMD, GDMD and responsible business Executive Director. The process for reporting Aged Inventory must be included within the Credit Program

Answer 196

TRUE

Question 197

Access Bank is committed to conducting business in an environmentally and socially responsible manner, but need not take cognizance of the Equator Principles

Answer 197

FALSE

Question 198

All credit relationships are subject to reviews on at least an annual basis in the form of an Abbreviated, a Nominal or a Full Credit Review

Answer 198

FALSE

Question 199

True or False

At any time a credit approval authority or the Head of Credit Risk Management may
determine that a more frequent review cycle is more appropriate for a particular relationship, geography, industry or business

Answer 199

TRUE

Question 200

An Abbreviated Annual Review is allowable each year for the following: Select the
inappropriate item

Answer 200

Any relationships with classified (substandard and worse) facilities or has been adversely noted at a CAC review in the review period

Question 201

What is the segment market for Current Account Individual

Answer 201

Individual

Question 202

What account type is Access Premier Account

Answer 202

Current

Question 203

Does this account attract interest payment, and at what rate

Answer 203

Yes, the interest on the account is 1% per annum

Question 204

What are the variants of MPower Biz accounts

Answer 204

MPower Biz Classic, MPower Biz Gold and MPower Biz Platinum

Question 205

What is the minimum daily balance and maximum turnover on Mpower Biz Classic

Answer 205

20,000 and 10mm

Question 206

A Contact Center imputer is the one who

Answer 206

Log cards requests

Question 207

Verve Debit card is blocked on ______ application

Answer 207

None

Question 208

Monthly maintenance fee is charged on which of the accounts below

Answer 208

None

Question 209

The opening balance for early savers account is

Answer 209

5,000

Question 210

The age limit for Standard Savings account is

Answer 210

None

Question 211

The maximum monthly turnover for Mpower Biz Classic account is

Answer 211

10 million

Question 212

An unresolved customer`s request should be left on what status

Answer 212

In progress

Question 213

Below are some of the details required in resolving a dispense error complaint except

Answer 213

None

Question 214

What is the minimum daily balance for a Solo Account

Answer 214

500

Question 215

What is the full meaning of EMP

Answer 215

Emerging Market Payments

Question 216

What is the minimum daily balance for Investment Savings Account

Answer 216

None

Question 217

When does a customer forfeit the interest accruable on Investment Savings Account

Answer 217

When money is drawn at will

Question 218

What is the Monthly Maintenance Charge for Investment Savings Account

Answer 218

None

Question 219

What is the minimum opening balance for a Current Account

Answer 219

10,000

Question 220

What is the meaning of N3 per mile

Answer 220

3 on every 1000

Question 221

These can be used as means of address verification except

Answer 221

Interntional Passport

Question 222

What is the minimum daily balance on a Domiciliary Account

Answer 222

Zero

Question 223

What is the maximum percentage of a customer’s salary who owns an Mpower Salary Account is offered as a Salary Advance

Answer 223

0.5

Question 224

Which of these accounts has a Zero Monthly Maintenance

Answer 224

Domicillary

Question 225

Financial Literacy Campaign is a benefit of which of the accounts below

Answer 225

Access Early Savers

Question 226

Which of these account holders can access an overdraft from the Bank

Answer 226

Current

Question 227

An Access customer who is transferring cash from Nigeria to Ghana uses which of these platforms

Answer 227

Access Direct

Question 228

Cash withdrawals from a prepaid card is done via

Answer 228

ALL

Question 229

What is the maximum daily load limit for a prepaid card

Answer 229

20k or USD equivalent

Question 230

What is the validity period for a prepaid card

Answer 230

24 months

Question 231

A lost prepaid card is re-issued by

Answer 231

Sending a mail to Card Services - Credit/Prepaid Card

Question 232

What is the cost for using our ATM card on other bank’s ATM machines

Answer 232

Zero

Question 233

What countries are covered under Access Direct for now

Answer 233

Nigeria & Ghana

Question 234

What is the maximum amount one can send using Access Direct

Answer 234

$10,000

Question 235

How many days does it take the beneficiary of Access Direct to get the transferred funds

Answer 235

Instantly

Question 236

What is the applicable charge to an Access Direct beneficiary

Answer 236

No charge

Question 237

What is the brand name for the Black card

Answer 237

The Access Black Card

Question 238

Which of these is a Card not present Transaction

Answer 238

ALL

Question 239

Which of these units deals on Interbank Foreign Exchange

Answer 239

Treasury

Question 240

Which of these is an interest bearing investment with no specific maturity date

Answer 240

Call deposits

Question 241

What is the full meaning of RTGS

Answer 241

Real Time Gross Settlement

Question 242

What is the full meaning of PCIDSS

Answer 242

Payment Card Industry Data Security Standard

Question 243

What is the maximum data retention period for Access Bank’s Information assets (digital and paper)

Answer 243

10 years

Question 244

State 2 applications used for customers’ account balance enquiry

Answer 244

Infopool and Transaction History

Question 245

What type of account allows equal monthly contribution in order to meet a target

Answer 245

Investment Savings

Question 246

Which of the following applications is used to transfer funds offshore to beneficiaries wherever you are in the world without walking into any Access Bank branch

Answer 246

Access Trade

Question 247

What is the full meaning of PAN

Answer 247

Primary Account Number

Question 248

The contact Center has the right to adjust these limits on credit cards except

Answer 248

Global Limit

Question 249

The Access Bank standard font type, size and colour for replying customer’s mails are

Answer 249

Arial, 12 and blue

Question 250

eGain always gives _____ to all inbound mails received

Answer 250

Auto response

Question 251

In the email handling flow chart, all requests escalated to other units/branches are closed on Siebel immediately

Answer 251

No

Question 252

Customer’s account details can only be communicated to third party if and only if the customer can not be reached on phone

Answer 252

No

Question 253

What is the full meaning of “CIU”

Answer 253

Customer Information Update

Question 254

The maximum monthly turnover for Mpower Biz Classic account is

Answer 254

10 million

Question 255

All of these cards are activated on the ATM except

Answer 255

Visa prepaid

Question 256

What is the cartoon character attached to the Access Early Savers

Answer 256

Dora the Explorer

Question 257

In Access FT, _________means that all charges – which include Access bank’s handling, telex and VAT charges + offshore charges are to be borne by the beneficiary. Therefore, the beneficiary will receive less than the amount transferred

Answer 257

BEN

Question 258

In Access FT, _________means that offshore charges ONLY are borne by the beneficiary. The beneficiary will receive less than the amount transferred

Answer 258

SHA

Question 259

In Access FT, _________means that offshore charges are borne by the remitter including the local charges so all the banks in the transfer chain are expected to pass their charges to Access bank so that the beneficiary gets the full amount transferred

Answer 259

OUR

Question 260

What Mobile Network can Access Money be registered

Answer 260

Airtel

Question 261

What is the maximum daily transaction limits on Access money

Answer 261

15,000

Question 262

Where can a customer load his wallet on Access money

Answer 262

Branch

Question 263

________ is a service that enables card holders provide their Travel details to the Contact Center ahead of their slated departure

Answer 263

Travel Advisory Services

Question 264

What is the validity period for an Emergency Card

Answer 264

30 days

Question 265

For all Credit card types, what are the limits on Emergency Card and Emergency
Cash

Answer 265

$5k and 50

Question 266

The Turn around time for an emergency card/cash request is

Answer 266

24 - 48 hours

Question 267

Does Access Premier account attract interest payment, and at what rate

Answer 267

Yes, 0.1% per annum

Question 268

Which of these products is not designed for individual

Answer 268

Mpower Biz Classic

Question 269

What are the variants of MPower Biz accounts

Answer 269

Classic, Gold & Platinum

Question 270

What is the minimum daily balance and maximum turnover on Mpower Biz Classic

Answer 270

20k and 1 million

Question 271

What is the minimum daily balance and maximum turnover on Mpower Biz Gold

Answer 271

50k and 50 million

Question 272

What is the minimum daily balance and maximum turnover on Mpower Biz Platinum

Answer 272

250k and 100 million

Question 273

How will I know which variant of MPower Biz to open for the customer

Answer 273

Based on customers business turnover

Question 274

What are benefits enjoyed by staff on the MPower Salary account

Answer 274

Salary Advance - up to 50% of net monthly salary and Personal Loan - up to 50% of the net annual salary

Question 275

What is the required minimum opening balance for Investment Savings Account

Answer 275

There is no fixed opening balance, as the opening amount would depend on the targeted amount

Question 276

What is the stipulated minimum tenor for Investment Savings Account

Answer 276

6 months

Question 277

The following can be used for address verification except

Answer 277

International Passport

Question 278

Which of this is not a document required to open Early Savers accounts

Answer 278

Gender of account holder

Question 279

Can Early Savers account be opened by un-born

Answer 279

Yes

Question 280

Can dividend warrants be deposited in Solo Account

Answer 280

No

Question 281

Which is the charge for Reference Letter

Answer 281

5,000

Question 282

What is the charge for Counter Cheque charge

Answer 282

100

Question 283

In Access Bank, accounts become dormant within what period

Answer 283

1 year

Question 284

What is the minimum daily balance on Early Savers

Answer 284

1,000

Question 285

What is the monthly maintenance charge on Access Premier

Answer 285

500

Question 286

What is the monthly maintenance charge on Mpower Biz Platinum

Answer 286

7,500

Question 287

What is the monthly maintenance charge on Mpower Biz Gold

Answer 287

5,000

Question 288

What is the monthly maintenance charge on Access IPSA

Answer 288

200

Question 289

What is the interest rate on Standard Savings

Answer 289

0.04%

Question 290

What type of account is Mpower Salary

Answer 290

Payroll Administration

Question 291

Which of these products require only 1 reference

Answer 291

Access IPSA

Question 292

What is the Monthly maintenance on Access Premier

Answer 292

500

Question 293

What is the maximum monthly turnover on Mpower Biz Classic

Answer 293

10 million

Question 294

What is the maximum monthly turnover on Mpower Biz Gold

Answer 294

50 million

Question 295

What is the maximum monthly turnover on Mpower Biz Platinum

Answer 295

100 million

Question 296

What is the new COT charge for Mpower Biz Gold that defaults

Answer 296

N3 per mile

Question 297

What is the opening balance on Solo account

Answer 297

1,000

Question 298

Which of these is not a variant of Access Bank`s Visa Credit Cards

Answer 298

Visa credit card silver

Question 299

What is the annual maintenance charge on Current Individual account

Answer 299

None

Question 300

What is minimum number of cars accommodated in Vehicle Fleet Finance product

Answer 300

10

Question 301

The CPG provides for the preparation of a report on deferrals by CAD. How
often must they do this?
A. Weekly
B. Monthly
C. Quarterly

Answer 301

B. Monthly

Question 302

What may trigger the need for an Exposure Quality Review?

A. A change in relationship Management
B. Identification of a decline in the quality of the facility
C. Significant change in the indemnity of the customer.

Answer 302

B. Identification of a decline in the quality of the facility

Question 303

How often must the MCC Institute periodic reviews of exposure in the bank?

A. Weekly
B. Quarterly
C. Annually

Answer 303

B. Quarterly

Question 304

The overall responsibility of sustaining the quality of individual risk exposure is primarily that of:

A. Head, Credit Risk Management
B. Group Head of Market facing biz unit
C. Relationship Manager
D. Executive Management
E. MCC

Answer 304

C. Relationship Manager

Question 305

The CPG provides that the discovery of any declining risk exposure must be brought to the notice of the Chairman of Criticized Assets Committee within:
A. 24hrs of the discovery
B. 48hrs of the discovery
C. 72hrs
D. 7 days

Answer 305

D. 7 days

Question 306

Whose responsibility will it be to make this report to the chairman of the
CAC?
A. Relationship management
B. Group Head of Business unit
C. ED of business unit
D. Head, Credit Risk Management
E. ED of business unit & Head, Credit Risk Management

Answer 306

E. ED of business unit & Head, Credit Risk Management

Question 307

In the event that the collateral for a credit facility is a mortgage on landed property, which one of the following is a condition precedent to final approval of the credit request?
A. Governor’s consent
B. Registration at land registry/Corporate Affairs Commission
C. Receipt of certificate of good title from search
D. All of the above.

Answer 307

C. Receipt of certificate of good title from search

Question 308

Whose responsibility is it under the CPG to develop and implement a bollateral management plan in respect of each facility?
A. Legal department.
B. Relationship Management
C. Credit Risk Management

Answer 308

C. Credit Risk Management

Question 309

In the event of non-compliance with collateralization conditions, whose responsibility is it to report to the Chairman, CAC?
A. Legal department
B. Relationship Manager
C. Credit Risk Management
D. Customer

Answer 309

C. Credit Risk Management

Question 310

What is the time frame within which the report will be made?

A. Within 24hrs
B. Within 48hrs
C. Within 72hrs
D. Within 7 days

Answer 310

D. Within 7 days

Question 311

Fill the blank space with the appropriate option. In the event of delinquency, a formal notice shall be made to the customer within ——- working days of default. A second notice shall be made after ——- working days of the first
notice.
A. 7 days ——–14 days
B. 14 days ——– 28 days
C. 10 days ———– 20 days

Answer 311

C. 10 days ———– 20 days

Question 312

The CPG provides that a credit watch list of non-performing / delinquent credits shall be prepared for circulation. How regularly must this report be guaranteed?

A. Weekly
B. Monthly
C. Quarterly
D. Daily

Answer 312

B. Monthly

Question 313

Under the CPG, the responsibility for delinquency Management shall be that of?

A. Legal department
B. Credit Risk Management
C. Relationship Management
D. Remedial Assets unit

Answer 313

D. Remedial Assets unit

Question 314

Under the CPG, all non performing /delinquent credits shall be classified as remedial assets after…
A. 90 days
B. 180 days
C. 360 days

Answer 314

C. 360 days

Question 315

Which one of the following is True? Credit facilities may be restructured:

A. At the request of the Obligor requiring a revision of the credit terms and condition
B. By the RM on identification of need to restructure based on performance of the facility C. Both A & B

Answer 315

C. Both A & B

Question 316

How much loan loss provisioning must be made for outstanding credit facility not specifically provided for?

A. 5%
B. 2%
C. 1%

Answer 316

C. 1%

Question 317

Where a non performing credit exposure has been classified as ‘doubtful’, how much loan loss provisioning must be made?

A. 10%
B. 20%
C. 50%

Answer 317

A. 10%

Question 318

Where a credit exposure has been classified as ‘lost’, how much loan loss provision does the CPG stipulate?

A. 100%
B. 75%
C. 50%

Answer 318

A. 100%

Question 319

Consideration of interest waivers and/ or credit charge shall be limited only to credit exposure classified as

A. “Gone”
B. “Doubtful”
C. “Lost”

Answer 319

C. “Lost”

Question 320

Discussions and negotiation in respect of repayment / waiver is the responsibility of:

A. Relationship Manager
B. Credit risk Management
C. Remedial Asset Unit
D. Executive Management

Answer 320

C. Remedial Asset Unit

Question 321

Under what circumstance may the bank consider granting a new facility to a borrower who had previously enjoyed a waiver?
A. If it is shown that customer has turned a new leaf
B. If customer brings biz to the bank
C. Where the customer has fully settled the previously granted waivers.
D. It depends on the circumstances

Answer 321

C. Where the customer has fully settled the previously granted waivers.

Question 322

All waivers of interest and charges shall require the approval of…

A. The Board
B. MCC
C. GMD
D. CBN

Answer 322

C. GMD

Question 323

Under what condition(s) will an exposure be recommended for write-off?

A. If continued contact with customer is impossible
B. If recovery cost is expected to be higher than the outstanding debt
C. If amount of realized from realization of credit collateral sanity leaves a balance of the debt
D. If it is reasonably determined that no further recovery on the facility is possible
E. Any of the above

Answer 323

E. Any of the above

Question 324

Under the CPG all credit facility write offs require approval by..?

A. The MCC
B. The Board of Directors
C. The Central Bank
D. The E.F.C.C.

Answer 324

C. The Central Bank

Question 325

In case of erroneous interest or charges debited to a customer’s account, reversal may be approved by…

A. Group Head Operations
B. ED Operations
C. Head Credit Risk Management
D. GMD

Answer 325

D. GMD

Question 326

Under the CPG, what is the primary reference document for creating & managing credit exposure?

A. Market Risk Policy
B. Environmental & Social Risk Policy
C. Country Risk Management Policy
D. Enterprise Risk Management Framework
E. None of the above

Answer 326

E. None of the above

Question 327

Under the CPG, which of the following statement is True?

A. The CPG is intended only for personnel involved in the creation & Management of credit exposure
B. All business units/ countries must fully comply with the provision of the CPG, whether or not their risks are specifically addressed by there policies.
C. All of the above

Answer 327

B. All business units/ countries must fully comply with the provision of the CPG, whether or not their risks are specifically addressed by there policies.

Question 328

Under the CPG, the Africa regional office of the credit risk Group reports to…

A. The GMD
B. The GDMD
C. The ED for rest of Africa
D. Head, Credit Risk Management in Head Office

Answer 328

D. Head, Credit Risk Management in Head Office

Question 329

129. Which one of the following is not a function of the MCC?

A. Approve Individual credit exposures line with its approval limits
B. Agree on portfolio plan / strategy for the bank
C. Approve lending decisions & limit setting
D. Review credit policy recommendation for Board approval

Answer 329

C. Approve lending decisions & limit setting

Question 330

130. Whose responsibility is it to ensure the integrity of the credit process and proper documentation of the credit decision?A. Credit Risk Management
     B. Legal department
     C. Relationship Management
     D. Any of the above.

Answer 330

C. Relationship Management

Question 331

The policy document sets out a framework for

A. The consistent management of Credit Risk
B. Identifying opportunities
C. Accessing Risks
D. Minimizing cost of credit

Answer 331

A. The consistent management of Credit Risk

Question 332

The policy is derived from

A. Leading international banks
B. The Bank’s Enterprise Risk Management Frameworks
C. The Central Bank of Nigeria
D. The Nigerian Deposit Insurance Corporation

Answer 332

B. The Bank’s Enterprise Risk Management Frameworks

Question 333

133. The Enterprise Risk Management Framework represent the following except

A. A structured approach to identifying opportunities
B. Assessing the risk inherent in these opportunities
C. Monitoring and reporting of demand deposits
D. Managing these risks proactively in a cost effective manner

Answer 333

C. Monitoring and reporting of demand deposits

Question 334

134. The manual outlines the general policies and procedures’ framework for credit risk management in the bank and incorporates provisions for

A. Marketing and risk analysis
B. Approval and administration of risk exposure
C. Monitoring and reporting of risk exposure
D. All of the above.

Answer 334

D. All of the above.

Question 335

135. The credit risk management policy manual is designed for the following except

A. Structuralize credit policies for the bank, giving clients clear and consistent direction for the creation of risk exposure across all asset creating business units.
B. Provide a comprehensive guide and framework in creating and managing risk assets.
C. Provide a framework for the on-going maintenance of the bank’s risk management policies and processes
D. Prudent management of decline in credit quality

Answer 335

A. Structuralize credit policies for the bank, giving clients clear and consistent direction for the creation of risk exposure across all asset creating business units.

Question 336

136. To ensure that the overall approach to creating and managing risk assets remains relevant and responsive to environment changes, the risk management policies will

A. Be reviewed on an on-going basis
B. Be appraised every 5 years
C. Undergo assessment every quarter
D. Be evaluated every year
E. All of the above

Answer 336

A. Be reviewed on an on-going basis

Question 337

137. The policy manual is intended for

A. Entry level personnel
B. Relationship Managers
C. All personnel involved in the creation and management of credit exposure
D. Management personnel involved in the creation and management of credit exposure
E. All of the above

Answer 337

E. All of the above

Question 338

138. Access Bank’s risk management policies comprise the following except

A. Policies
B. Standards
C. Procedures
D. Structures

Answer 338

D. Structures

Question 339

139. Proposals for addition to or modification of policy statements and procedures or any section of this manual will be presented to

A. Head, Human Capital
B. Management Credit Committee
C. Board of Directors
D. The Head, Credit Risk Management

Answer 339

D. The Head, Credit Risk Management

Question 340

According to the Bank’s Risk Management Philosophy, the Bank “considers risk management philosophy and culture as the set of shared beliefs, values, attitudes and ______________ characterizing how the Bank considers risk in everything it does, from strategy development and implementation to its day-to-day activities”.

A. Culture
B. Psychology
C. Practices
D. Expectation

Answer 340

C. Practices

Question 341

The Bank’s Risk Management philosophy is that ________________ and _________________ risk attitude will ensure sustainable growth in shareholder value and reputation.

A. Aggressive and prudential
B. Moderate and guarded
C. Restrained and reasonable
D. Extreme and temperate

Answer 341

B. Moderate and guarded

Question 342

The following are all guiding principles for the Bank’s risk culture except: Management and staff shall:

A. Consider all forms of risk in decision-making
B. Create and evaluate business-unit and Bank-wide risk profile to consider what is best for their individual business units/departments regardless of what is best for the Bank as a whole
C. Adopt a portfolio view of risk in addition to understanding individual risk elements
D. Retain ownership and accountability for risk and risk management at the business unit or other point of influence level

Answer 342

B. Create and evaluate business-unit and Bank-wide risk profile to consider what is best for their individual business units/departments regardless of what is best for the Bank as a whole

Question 343

The enterprise risk management is

A. Mandatory
B. Optional
C. Discretionary
D. Fixed

Answer 343

A. Mandatory

Question 344

144. Risk management is the responsibility of

A. Management Credit Committee
B. Risk Officer’s
C. Relationship Manager’s
D. All of the above

Answer 344

D. All of the above