Partners, Directors and Senior Officers Course (PDO) Practice Questions And Answers

A transparent characterization of the competitive activities that a corporation is equipped to engage in, and the risk thresholds that it is able to consider, and an understanding of all the different threats that the enterprise is facing, both at the level of the business entity and as a whole.

Risk profile: The firm’s entire risk landscape reflecting the nature and scale of its risk exposures aggregated within and across each relevant risk category.

A risk appetite framework is good to the extent that it allows the people who set a firm’s strategy to accept in a conscious way the risks that correspond with that strategy and the underlying business model. It’s good to the extent that people within a firm who take risks on its behalf know what strategic objectives they are supporting in their risk-taking; and keep within the limits translating these objectives. It’s good to the extent that all of a firm’s material risks are understood, along with the drivers of those risks. And it’s good to the extent that risk appetite language as the key ingredient of its risk culture permeates the firm, its decision-making processes and the understanding of its own performance.

The full project team should be actively involved. Potential risks should be identified by all members of the project team. No criticism of any suggestion is permitted. Any potential risk identified by anyone should be recorded, regardless of whether other members of the group consider it to be significant. All potential risks identified by brainstorming should be documented and followed up by the IPT.

The distribution of the Senior Management Function (SMF), the assigned roles and the appropriateness of the distribution, and whether there are any differences in regulatory requirements and whether the SMFs have generated handover papers.

Specific policy documents and relevant processes and procedures guides that are easily conveyed to workers and accessible for personnel analysis if appropriate.

In today’s global marketplace, risk management has taken on an even more important role as businesses are more frequently exposed to foreign exchange rate movements. Indeed, liquidity risk management is arguably one of the most important functions of the treasury department.

Top-level reviews of progress towards stated objectives, verifying compliance with management controls, review of the treatment and resolution of instances of non-compliance, evaluation of the required approvals and authorisations to ensure accountability to an appropriate level of management and tracking reports for approved exceptions to thresholds or limits, management overrides and other deviations from policy.

Clearly established authorities and/or processes for approval, close monitoring of adherence to assigned risk thresholds or limits, safeguards for access to, and use of, bank assets and records, appropriate staffing level and training to maintain expertise, ongoing processes to identify business lines or products where returns appear to be out of line with reasonable expectations, regular verification and reconciliation of transactions and accounts and a vacation policy that provides for officers and employees being absent from their duties for a period of not less than two consecutive weeks.

Divisions of joint activities of internal outsourcing include long-term partnership, short-term partnership, and single partnerships.

Group in charge of setting the plan and keeping management responsible for execution is not the responsibility of board’s(board of directors) in the view of FCA.

The audit committee has the potential advantages of increased transparency of financial reports and enhanced public faith in the quality and objectivity of financial statements.

The FCA defines a complaint as an expression of dissatisfaction (oral or written) about the provision of, or failure to provide, a financial service. It alleges how you have suffered (or may suffer) financial loss, material distress or material inconvenience.

Reputation risk management becomes an integral part of business decision processes, ranging from new product approval and credit decisions to procurement.

Its arrangements for the continuity of operations in the event that a significant process or system becomes unavailable or is destroyed.

A firm should have regard to confidentiality, integrity, availability and authentication and non-repudiation and accountability. These are some basic yet extremely significant measures to be kept in view.

A true solution to enable retail banking entities to navigate the immense scale of guidelines coming from all over the globe is possible through the plan of determining who does what; process, coordination and risk mitigation are informed by the application. It Automates the work assigning process.

Retaliation and deployment plans outlining the processes for the execution of business continuity services and associated contact details.

While firms have growingly tapped into market funding such as bonds and commercial paper, the out-of-court restructuring framework hinges on the role of the main creditor banks. Uncertainty arises, therefore, regarding a loss sharing between bank creditors and nonbank creditors, as banks have less incentive to initiate debt restructuring and bear the brunt of restructuring.

Banks may provide compliance control systems, law enforcement reports, regulatory alerts and reporting protocols.