Risk

Question 1

Three Line Defense

Answer 1

• operational management
• independent risk management
• internal audit

Question 2

Barriers to Risk Managament x3

Answer 2

• Poor Quality Data
• Lack of Expertise
• Lack of understanding of risk

Question 3

Management Information (x5)

Answer 3

• Relevant
• Acted Upon
• Timely
• Accurate
• Recorded

Question 4

Baning Risks (CLM -Rory)

Answer 4

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

Question 5

Risk Grading/Scoring

Answer 5

Credit Score - alphabetical
Security- Numeric

Question 6

Bank Credit Culture formed by P-pem-csm

Answer 6

Policies
Practices
Experience
Management Attitude

Capital Adequacy
Supervisory Review
Market Discipline

Last 3 external influences- basel accord