MCQ Risk - Chapter 3

Question 1

Market abuse is covered by which of the following?

A
Proceeds of Crime Act

B
Criminal Justice Act

C
Markets in Financial Instruments Directive

D
Market Abuse Regulation

Answer 1

D
Market Abuse Regulation

Question 2

How many operational risk type events have been identified by the basel Committee?

A
4

B
5

C
7

D
11

Answer 2

C
7

Question 3

Who is the inter-governmental body that sets standards to combat money laundering and terrorist financing?

A
NCA

B
FATF

C
FCA

D
ASB

Answer 3

B
FATF

Question 4

Which of the following is a main function of risk reporting?

A
To establish the cost of risk measurement

B
To establish firm-wide adoption of appropriate risk parameters

C
To determine acceptable levels of risk

D
To reduce uncertainty

Answer 4

D
To reduce uncertainty

Question 5

Within a simple operational risk framework, which one of the following stages would precede the Risk Measurement and Assessment stage?

A
Risk Identification

B
Risk Monitoring

C
Risk Reporting

D
Management and Control

Answer 5

C
Risk Reporting

Question 6

The self assessment method of identifying risk would typically use?

Bottom-up analysis
Top-down analysis
Questionnaires for scoring risks
Scenario analysis

Answer 6

Questionnaires for scoring risk

Question 7

The type of risk assessment that uses a detailed profile of the risks occurring in each area then aggregates them to provide an overall measure of exposure does so by

Using loss data and experience of relevant personnel
Relying on the experience of business professionals to capture relevant scenarios
Compiling a heat map
Plotting net and gross risk seperatly

Answer 7

Using loss data and experience of relevant personnel

Question 8

Wha