Part 1 ID

Question 1

PRAs regulatory imperative…

Answer 1

A firm will need to notify the PRA of any operational risk matter that has significant regulatory impact

Question 2

PRAs reg imperative Includes (3)

Answer 2

Signif failure in systems and controls
Signif operational loss
Intention to enter into or significantly change a material outsourcing arrangement

Question 3

Following pra reg imperative, firms must …

Answer 3

Develop strategies

To identify measure and control / mitigate risk

Question 4

Developing better standards…Basel Committee

Answer 4

Looking for boards of directors to have clear lines of responsibility, accountability and reporting
Must be clear responsibilities (segregated!) and reporting lines between control fu cations and revenue generating business lines

Question 5

Tools and techniques… Must consider :

Answer 5

Relationship with clients
Nature of products
Wider business environment
Raise awareness

Question 6

If we fail to identify a risk, we also fail to….

Answer 6

Assess it, mitigate it, monitor it

Question 7

The business should be…

Answer 7

Proactive
Constantly appraising external and internal environments
Put Identification at the heart of the development of a risk management project