$25.$From a strategic perspective, it is helpful to consider the $...$ that a firm may suffer.

Select one:

a$.$ reputation risk appetite

b$.$ expected loss

c$.$ unexpected loss

d$.$ operational risk function

$26.$What are some of the benefits of getting operational risk management right?

Select one:

a$.$ Getting operational risk appetite right.

b$.$ Getting reporting right.

c$.$ Getting governance right, operational risk appetite, reporting, risk and control assessment.

d$.$ Getting governance right.

$27.$ Select the correct statements according to the second line of defence:

I. Develops centralised policies and standards

II$.$ Develops risk management processes and controls

III. External audit gives assurance on the financial statements

IV$.$ Implement controls to mitigate risks

V$.$ Monitors and reports on risk

VI$.$ Own the risk management process

VII. Promotes strong risk culture

VIII. Provides an independent and objective challenge to the levels of assurance provided by business operations and oversight

IX$.$ Responsible for the day$-$to$-$day management by risk$-$takers

X$.$ Sets risk appetite and defined risk

XI$.$ Validates processes in the risk management framework

Choose the correct option:

Select one:

a$.$ I, II$,$ III, IV$,$ VII and XI GPT

b$.$ I, II and V BAARD & CRAM

c$.$ I, III and IV

d$.$ III, IV$,$ VI$,$ X and XI

$28....$ is one of the major concerns of operational risk management.

Select one:

a$.$ Chain of causality

b$.$ Cause

c$.$ Event

d$.$ Effect

Cause is one of the major concerns of operational risk management.

$29.$ Select the correct statements according to the first line of defence:

I. Develops centralised policies and standards

II$.$ Develops risk management processes and controls

III. External audit gives assurance on the financial statements

IV$.$ Implement controls to mitigate risks

V$.$ Monitors and reports on risk

VI$.$ Own the risk management process

VII. Promotes strong risk culture

VIII. Provides an independent and objective challenge to the levels of assurance provided by business operations and oversight

IX$.$ Responsible for the day$-$to$-$day management by risk$-$takers

X$.$ Sets risk appetite and defined risk

XI$.$ Validates processes in the risk management framework

Choose the correct option:

Select one:

a$.$ III, IV$,$ V$,$ VII, IX and X

b$.$ I, III, IV$,$ V$,$ VIII and XI

c$.$ IV$,$ VI$,$ VII, IX and X

d$.$ I, II$,$ III, IV$,$ VI$,$ IX and X

$30.$ An event is used to describe the $\_\_\_\_\_\_\_\_\_\_,$ whether or not an $\_\_\_\_\_\_\_\_\_\_$ is suffered by the firm, for example KFC sold chicken containing salmonella. Choose the correct option to fill the missing word$($s$)$:

Select one:

a$.$ operational risk; residual risk

b$.$ occurrence of a risk; residual risk

c$.$ operational risk; actual loss

d$.$ occurrence of a risk; actual loss

$31.$ What is risk culture?

Select one:

a$.$ Attitudes$/$values$/$beliefs and understanding of risk by a group such as an organisation.

b$.$ A process that firms use to develop operational risk frameworks.

c$.$ Indicates the operational risk framework a firm undertakes.

d$.$ The effect of uncertainty on objectives.

$32.$ It is important from an operational risk management perspective to understand the causes of an event and its consequences. Which of the following statements can be classified as a $$cause$$ which can lead to an operational risk?

I. The fire hydrants on the ship were faulty.

II$.$ There was an explosion at the chemical factory.

III. The truck driver was driving under the influence.

IV$.$ Customers can not log into their online banking.

Choose the correct option:

Select one:

a$.$ I and III

b$.$ I and II

c$.$ II and III

d$.$ I, III and IV

$33.$Which operational risk event in $2005$ led to over $1800$ deaths?

Select one:

a$.$ Hurricane Katrina

b$.$ Floods in Thailand

c$.$ Terrorist attack on the World Trade Centre

d$.$ NE USA power failure

$34.$Which ONE of the following external loss databases is used to help organisations benchmark their own performance and the quality of their controls?

Select one:

a$.$ Competitors$$ internal loss data

b$.$ Publicly available loss information

c$.$ Firm$$s own loss data

d$.$ Risk registers

$35.$The following is a correct representation of a low impact high likelihood risk:

Indicate if the above is true or false:

Select one:

a$.$ True

b$.$ False