Risk Flashcards
1
Q
Three Line Defense
A
- operational management
- independent risk management
- internal audit
2
Q
Barriers to Risk Managament x3
A
- Poor Quality Data
- Lack of Expertise
- Lack of understanding of risk
3
Q
Management Information (x5)
A
- Relevant
- Acted Upon
- Timely
- Accurate
- Recorded
4
Q
Baning Risks (CLM -Rory)
A
Credit - customers may default
Liquidity - cash run dry
Market - reliance on customer success
Regulatory - new changes
Operational - people, processes, tech
Reputational - share price damage
Environmental - security/polluters
External - No control
5
Q
Risk Grading/Scoring
A
Credit Score - alphabetical
Security- Numeric
6
Q
Bank Credit Culture formed by P-pem-csm
A
Policies
Practices
Experience
Management Attitude
Capital Adequacy
Supervisory Review
Market Discipline
Last 3 external influences- basel accord
