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Certificate in Operational Risk Management (CORM) Quiz
Students need to complete a 50 multiple-choice question exam online to attain the Certificate in Operational Risk Management. 30 of the 50 questions need to be correct order to pass.
Test your knowledge here on our 10 question quiz which are samples of topics covered in the CORM Course Workbook. You must submit your email address at the end of the quiz to find out your results.
Test your knowledge here on our 10 question quiz which are samples of topics covered in the CORM Course Workbook. You must submit your email address at the end of the quiz to find out your results.
Is this the correct definition of operational risk used by the Basel Committe? 'Risk of loss resulting from inadequate or failed internal processes, people and systems or from external events'.
One of the commonly used definitions of operational risk within banking was published as part of Basel II, which defines operational risk as to the 'risk of loss resulting from inadequate or failed internal processes, people and systems or from external events'.
Yes
No
Which of the following is a primary risk type?
Legal risk
Reputational risk
Conduct risk
Strategic risk
What does a bow-tie model cover?
Financial Impact, Reputational Impact, Legal Impact
Primary Cause, Secondary Cause, Event
Event, Financial Impact, Non Financial Impact
Cause, Event, Impact
Which of the following pairs is a component of the risk management process?
Strategic objectives and business continuity
Identification and response
Business planning and change management
Dispute resolution and impact assessment
The purpose of a risk appetite statement is to:
Communicate to external stakeholders only, in a clear, concise, and understandable way, the organisation’s risk appetite
Communicate to employees and external stakeholders, in a clear, concise, and understandable way, the organisation’s risk appetite
Communicate to employees only, in a clear, concise, and understandable way, the organisation’s risk appetite
Communicate that the organisation expects no risks to be taken
What is the prime function of an external audit?
To provide assurance on financial statements
To provide assurance on the risk management framework
To provide assurance on the internal audit function
To ensure that controls are effective
Which of the following is a definition of risk appetite?
Risk appetite is a fundamental part of risk management because it provides evidence that a risk event has materialised
Risk appetite is the amount and type of risk that an organisation is willing to pursue or retain in order to achieve its objectives
Risk appetite is a loss resulting from inadequate or failed internal processes, people and systems or from external events
Risk appetite is a process of classifying risks in a consistent way which enables the aggregation, analysis and reporting of risks
Which of the following communicates how the management of operational risk can enable the firm to achieve its business objectives?
Operational risk framework
Operational risk process
Operational risk appetite statement
Operational risk policy
For which of the following is the firm’s governing body primarily responsible?
Providing assurance that controls are being implemented
Assessing exposure to each operational risk to ensure it is within risk appetite
Establishing a clear strategy and risk objectives for the organisation
Developing the operational risk framework
Which of the below is an example of a risk categorisation scheme based on processes?
Physical, procedural, information security, legal & regulatory
Branch, intermediary, online, call centre
Customer onboarding, customer servicing, transactions, payments
Commercial banking, commercial credit, commercial loans
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