PRIMIA Mock Test: Chapter 2

Business

2 plays

20 questions

jadeseton

•over 4 years ago

Question 1

Multiple Choice

10 points

Structure specifying policies and principle and procedures to enable decision making

A.Risk

B.Governance

C.Cybernetics

D.Compliance

Question 2

Multiple Choice

10 points

Which of the following is not mentioned as a regulation produced after the 2008 financial crisis?

A.Basel III capital rules for bank

B. Objectives and Principles of Securities and Regulations

C.Guidelines for Complaint Handling

D.International Standards for Combating Money Laundering

Question 3

Multiple Choice

10 points

Which standard deals with the compliance frameworks for regulated financial services firms?

A.AS 3806

B.BS 8453

C. ISO 10002

D.ISO 31000

Question 4

Multiple Response

10 points

A typical list of the top responsibilities for a CRO might include

A. Reputational risk

B.Ensure business continuity

C.Compliance

D.None of the above

Question 5

Multiple Choice

10 points

Regarding risk management, the corporate view might be that it is the risk management process that

A.Supports the strategic plan and approves appetite for risk

B.Develops the strategic plan and defines appetite for risk

C.Develops the strategic plan and approves appetite for risk

D.Supports the strategic plan and defines appetite for risk

Question 6

Drag and Drop into Text

10 points

Match the Standard with the risk governance element it is measuring against: 1. AS 3806 : [[1]] 2. BS 8477 : [[2]] 3. IF-RS : [[3]] 4. ISO 14000 : [[4]] 5. ISO 22301: [[5]] 6. ISO 31000 : [[6]] 7. ISO 9001: [[7]] 8. ISO 27000 : [[8]] 9. SAS 70 : [[9]] 10. SWIFT: [[10]]

compliance systems

customer service;

accounting standards

environmental management systems

business continuity management

international risk management standard

quality management systems

information security systems

auditing of financial controls

numerous information transmission standards

Question 7

Multiple Choice

10 points

_______________ refers to the scientific study of control and communication

A.Governance

B.Cybernetics

C.Framework

D.Risk Management

Question 8

Multiple Choice

10 points

The _________________was first to require a board to consider risks and control systems for risks

A.Walker Review

B.Turnbull Report

C.Myners Report

D.Hampel Report

Question 9

Multiple Choice

10 points

Which of the following are responsibilities of the board:

A.Reviewing and guiding corporate strategy, major plans of action, risk policy, annual budgets and business plans;

B.Ensuring the integrity of the corporation's accounting and financial reporting systems

C.Both A and B

D.None of the above

Question 10

Multiple Choice

10 points

In the wake of dot.bomb boom and Enron scandal, the government sought to establish which principles to remediate gaps identified in corporate governance.

A.Sarbanes-Oxley Act of 2002

B.UK Corporate Governance Codé

C.ISO 10002

D.ISO 22222

Question 11

Multiple Choice

10 points

Which structure of governance designed to improve results?

A.reactive

B.preventative

C.active

D.All of the above

Question 12

Multiple Choice

10 points

Which structure of governance that attempt to 'aim' or keep the organization on target?

A.reactive

B.preventative

C.active

D.All of the above

Question 13

Multiple Choice

10 points

Which report supports that the CRO should report to the board risk committee, and with direct line to the chairman of the committee.

A.2003 Higgs Report

B.1995 Greenbury Report

C.Walker Report (2009)

D.1998 Hampel Report

Question 14

Multiple Response

10 points

Which are attributes of the Risk Function:

A.Set out some basic stages in risk management identification and assessment

B.Own the categorization of all risks and determine a common risk taxonomy

C.Agree the allocation of the board's risk appetite

D.Monitor the nature and levels of identified risk and communicate them regularly

E.Prepare an annual report on risk management for the board

F.established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises

Question 15

Multiple Response

10 points

Which are considered as implementation elements in a viable systems model (VSM)

A.input, process, output;

B.feedforward, feedback;

C.monitoring and governance

Question 16

Multiple Response

10 points

Which are considered as management elements in a viable systems model (VSM)

A.input, process, output;

B.feedforward, feedback;

C.monitoring and governance

Question 17

Multiple Response

10 points

____________the probability of an adverse occurrence multiplied by the impact of that adverse occurrence

A.Governance

B.Structure

C.Cybernetics

D.Risk

Question 18

Multiple Response

10 points

All computers fail eventually, but is it worth having a maintenance contract, or is it better to have a "chuck and replace" policy. Base on this scenario what is its Risk Profile ?

A.High severity, low likelihood

B.Low severity, high likelihood

C.High severity, high likelihood

D.Low severity, low likelihood

Question 19

Multiple Response

10 points

Risk associated with Introduction of new technology (e.g., mobile banking) by an aggressive competitor, targeting traditional banking clients and disintermediating expensive branch networks. What is its Risk profile ?

A.High severity, low likelihood

B.High severity, high likelihood

C.Low severity, high likelihood

D.Low severity, low likelihood

Question 20

Drag and Drop into Text

10 points

Risk management is the application of [[1]] to financial, [[2]] , systems, human and organizational [[3]] to improve [[4]] .

risk analysis

strategic

problems

performance