Payments Risk Policy & Governance Flashcards

1
Q

Total process required to identify, control and minimize the impact of uncertain events.

A

Risk Management

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2
Q

Amount of risk, on a broad level, an entity is willing to accept in pursuit of value.

A

Risk Appetite

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3
Q

Acceptable level of variation relative to achievement of a specific objective.

A

Risk Tolerance

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4
Q

Overall process of risk identification, analysis and evaluation.

A

Risk Assessment

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5
Q

Finding, recognizing and describing risks.

A

Risk Identification

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6
Q

Process to comprehend the nature of risks and determine the level of risks.

A

Risk Analysis

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7
Q

Process of comparing risk analysis results to determine if risk is at an acceptable level.

A

Risk Evaluation

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8
Q

Process to determine the likelihood of an adverse event or threat occurring and the potential impact of such an event on the institution.

A

Risk Measurement

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9
Q

Informed decision to accept or take a particular risk.

A

Risk Acceptance

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10
Q

Risk is accepted as tolerable and falls within the risk appetite.

A

Risk Acceptance without Treatment

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11
Q

Risks that are monitored and reviewed to ensure they remain within the risk appetite.

A

Risk Acceptance with Treatment

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12
Q

Informed decision to withdraw from or not become involved with an activity to avoid exposure to unwanted or unacceptable risks.

A

Risk Avoidance

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13
Q

Form of risk treatment involving an agreed-upon distribution of risk with other parties.

A

Risk Sharing

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14
Q

Form of risk sharing that allocates risk equitably.

A

Risk Assignment

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15
Q

Group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management-related policies.

A

Board of Directors (Board)

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16
Q

Highest-ranking executive in an organization responsible for making major corporate decisions, managing overall operations and resources, and acting as the main point of communication with the Board.

A

Chief Executive Officer (CEO)

17
Q

Group of individuals at the highest-levels of management of an organization who have the day-to-day tasks of managing the organization.

A

Senior Management Team (Executive Management, Management Team)

18
Q

Group of individuals that may elect directors of an organization, including the CEO and CFO, and benefit through dividends or share buybacks.

A

Shareholders

19
Q

Defines the course of action adopted for the sake of expediency and facilitation of objectives.

A

Policy

20
Q

Defines the manner in which an organization will proceed, perform or affect something to accomplish the objectives of a policy.

A

Procedures

21
Q

Method used to calculate the creditworthiness of an individual or business.

A

Credit Analysis

22
Q

Clear, written guidelines that set the terms and conditions for supplying services on credit, qualification criteria, procedures for making collections and steps to be taken in case of customer delinquency.

A

Credit Policy