MODULE 5 Flashcards

1
Q

The risk arising when a borrower or counterparty fails to meet financial obligations

A

Credit risk

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2
Q

The potential for losses due to changes in market conditions such as interest rates, foreign exchange rates, and stock prices

A

Market risk

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3
Q

Losses caused by inadequate internal processes, human error, or system failures, including cybersecurity threats

A

Operational risk

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4
Q

Risks arising from data breaches, fraud, and identity theft

A

Cybersecurity and fraud risk

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5
Q

A tool used to estimate the maximum potential loss on a portfolio under normal market conditions

A

Value at Risk

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6
Q

A security process requiring users to verify their identities through multiple steps

A

Multi-factor authentication

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7
Q

A framework used to identify and mitigate operational risks across an organization

A

Risk and Control Self-Assessment framework

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8
Q

Scrambling data during transmission to protect it from being intercepted

A

Encryption

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9
Q

The use of fingerprints or facial recognition for secure access to banking platforms

A

Biometric authentication

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10
Q

A decentralized alternative to traditional banking, providing secure and transparent transaction processing

A

Blockchain

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11
Q

Allows third-party applications to access bank data with user consent, fostering personalized financial services

A

Open banking

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12
Q

A framework ensuring banks maintain sufficient capital buffers to withstand potential losses

A

Basel Accords

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13
Q

A tool simulating adverse market scenarios to identify vulnerabilities in financial portfolios

A

Stress testing

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14
Q

An event where hackers exploited weaknesses in a bank’s SWIFT network security to steal $81 million

A

Bangladesh Bank heist

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15
Q

A Philippine mobile banking app that allows clients to access e-wallets, transfer funds, and pay bills

A

UnionBank app

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16
Q

A digital payment method widely accepted in the Philippines for fast and cashless transactions

A

GCash

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17
Q

A cyber fraud incident in 2021 where fraudsters illegally accessed customer accounts and transferred funds

A

BDO Unibank cyber fraud

18
Q

The use of AI algorithms to analyze transaction behaviors and detect fraud attempts

A

AI-driven fraud detection

19
Q

The global financial crisis exemplifying failures in managing credit and market risk

A

2008 financial crisis

20
Q

A security measure used to identify unusual transaction patterns and monitor for suspicious activities

A

Anti-fraud detection systems

21
Q

A framework used by banks to ensure compliance with regulatory standards and internal controls

A

Operational risk management frameworks

22
Q

The tool that helps assess the likelihood of default among borrowers

A

Credit scoring models

23
Q

A tool used to simulate adverse scenarios for better risk preparation

A

Stress testing

24
Q

A cybersecurity measure ensuring transaction confidentiality

A

End-to-end encryption

25
A Philippine bank known for its user-friendly digital banking interface
UnionBank
26
The rapid adoption of technology reshaping financial transaction security
Digital transformation
27
A security process requiring OTPs for transaction verification
One-time passwords
28
A global bank utilizing AI algorithms for risk assessment
JPMorgan Chase
29
The technology enabling seamless financial services integration with consent
Open banking APIs
30
An organization setting global standards for capital adequacy in banking
Basel Committee on Banking Supervision
31
The major 2014 data breach affecting millions of households
JPMorgan Chase data breach
32
The banking service offering decentralized remittance processing
Blockchain-based remittance
33
A global financial giant investing in cryptocurrency infrastructure
Goldman Sachs
34
The practice of regularly simulating market downturns to test stability
Stress testing practices
35
An emerging trend enabling personalized financial services using customer data
AI-driven banking solutions
36
The rise of fintech firms challenging traditional banking models
Competitive pressure from fintech
37
The Philippine central bank's guidelines for promoting interoperability in digital finance
Bangko Sentral ng Pilipinas open banking initiative
38
The global crisis resulting from inadequate credit and risk assessments
2008 financial crisis
39
A mobile wallet offering financial inclusion in rural Philippines
GCash
40
A major cyber threat targeting banks due to increasing digital adoption
Phishing attacks