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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Compliance Risk | 6% | - Compliance Risk Framework |
| Topic 2: Operational Resilience | 4% | - Resilience Concepts and Practices |
| Topic 3: Risk Assessment | 10% | - Risk Identification and Assessment Techniques |
| Topic 4: Case Studies | 6% | - Applied Operational Risk Scenarios |
| Topic 5: Risk Management Framework | 10% | - Risk Appetite, Policies, Culture |
| Topic 6: Operational Risk Capital | 6% | - Capital Concepts & Basel III Context |
| Topic 7: Risk Information | 10% | - Loss Data, KRIs and Reporting |
| Topic 8: Introduction | 2% | - Overview of Operational Risk Management |
| Topic 9: Risk Governance | 6% | - Governance Principles and Risk Roles |
For a given mean, which distribution would you prefer for frequency modeling where operational risk events are considered dependent, or in other words are seen as clustering together (as opposed to being independent)?
Correct Answer: C 🗳️
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For a 10 year interest rate swap, what would be the worst time for a counterparty to default (in terms of the maximum likely credit exposure)
Correct Answer: A 🗳️
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Which of the following credit risk models focuses on default alone and ignores credit migration when assessing credit risk?
Correct Answer: A 🗳️
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The probability of default of a security over a 1 year period is 3%. What is the probability that it would have defaulted within 6 months?
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A long position in a creditsensitive bond can be synthetically replicated using:
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