Question $6(12$ x Marks$)$

Use the following table to complete and indicate the identified risk mitigations$/$control measures allocated to each risk.

$$

Operational risks

Mitigation$/$control measure

Regulatory constraints

$$

Threats$$ posed$$ by emerging technology companies

$$

Psychological effects of COVID$-19$

$$

Fraud via digital channels

$$

Inadequate procedures to detect internal$$ fraud$$ and staff defalcations

$$

Resourcing$$ for$$ ESG$$ risk management

$$

Technology instability

$$

Unawareness$$ of$$ customers regarding digital fraud

$$

Resourcing skilled staff for risk management

$$

Operational dependence on third parties

$$

Back$-$to$-$back extreme weather events

$$

Ransomware attacks

$$

Question $7(10$ x Marks$)$

The functions of the risk committees of the Bank are structured and aligned with the three levels of risk management. Explain the roles and responsibilities of the three lines of defence related to risk management.

Question $8(5$ x Marks$)$ Define risk appetite and distinguish between risk appetite and risk tolerance using an appropriate example. Analyse the Bank's risk appetite towards regulatory requirements and internal fraud.

Question $9(5$ x Marks$)$

According to the case study, the Bank endeavors to embed a strong risk management culture by performing operations correctly. Staff is educated on the principles, standards, values and ethics related to effective risk management. Explain the concept of an operational risk culture and discuss the principles of a sound risk culture in terms of good business conduct to which all employees should subscribe

Question $6(12$ x Marks$)$

Use the following table to complete and indicate the identified risk mitigations$/$control measures allocated to each risk.

$$

Operational risks

Mitigation$/$control measure

Regulatory constraints

$$

Threats$$ posed$$ by emerging technology companies

$$

Psychological effects of COVID$-19$

$$

Fraud via digital channels

$$

Inadequate procedures to detect internal$$ fraud$$ and staff defalcations

$$

Resourcing$$ for$$ ESG$$ risk management

$$

Technology instability

$$

Unawareness$$ of$$ customers regarding digital fraud

$$

Resourcing skilled staff for risk management

$$

Operational dependence on third parties

$$

Back$-$to$-$back extreme weather events

$$

Ransomware attacks

$$

Question $7(10$ x Marks$)$

The functions of the risk committees of the Bank are structured and aligned with the three levels of risk management. Explain the roles and responsibilities of the three lines of defence related to risk management.

Question $8(5$ x Marks$)$ Define risk appetite and distinguish between risk appetite and risk tolerance using an appropriate example. Analyse the Bank's risk appetite towards regulatory requirements and internal fraud.

Question $9(5$ x Marks$)$

According to the case study, the Bank endeavors to embed a strong risk management culture by performing operations correctly. Staff is educated on the principles, standards, values and ethics related to effective risk management. Explain the concept of an operational risk culture and discuss the principles of a sound risk culture in terms of good business conduct to which all employees should subscribe