CAIIB · BFM · Chapter 6

Operational Risk and Integrated Risk Management

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.

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Q

People-oriented?

A

Negligence, incompetence, insufficient training, integrity issues, key-man risk.

Q

Process-oriented (Transaction-based)?

A

Business-volume fluctuations, organisational complexity, product complexity, major change events.

Q

Process-oriented (Operational-control-based)?

A

Inadequate segregation of duties, lack of management supervision, inadequate procedures.

Q

Technology-oriented?

A

Poor IT / telecom, obsolete applications, lack of automation, information-system complexity, poor design / development / testing.

Q

External?

A

Natural disasters, operational failures of a third party, deteriorated social or political context.

Q

Legal liability?

A

court awards, settlements, damages.

Q

Regulatory, compliance, and taxation penalties?

A

fines and monetary penalties by RBI / SEBI / IRDAI / tax authorities.

Q

Loss or damage to assets?

A

physical destruction of branches, ATMs, servers.

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