Fraud
Occurs when someone uses another person's identifying information to commit fraud.
What is identity theft?
The Bank Protection Act was enacted to reduce this type of criminal activity.
What is bank robbery?
This type of risk arises from failures in internal processes, people, or systems.
What is operational risk?
This is the first step in the risk management process.
What is risk identification?
Two-part question: This group is ultimately responsible for overseeing a bank’s risk management. This principle ensures that risk management activities are transparent and well-documented.
What is the board of directors? What is risk governance?
Type of scam that involves using fake online identities to gain a victim's trust before manipulating them into sending funds or engaging in money laundering.
What is a romance scam?
Under the Act, banks must develop and implement these to safeguard against crimes.
What are security procedures?
This risk involves the possibility of a borrower failing to repay a loan.
What is credit risk?
This document outlines a bank’s approach to managing risk across the enterprise.
What is the risk appetite statement?
This executive typically leads the ERM function in a bank.
Who is the Chief Risk Officer (CRO)?
Type of check fraud using checks between 2 or more bank accounts to create artificial funds.
What is check kiting?
Banks are required to install these devices to reduce criminal activity.
What are cameras, alarms, locks/safes?
This risk is associated with changes in interest rates affecting a bank’s earnings or value.
What is interest rate risk?
This term refers to the process of evaluating the likelihood and impact of identified risks.
What is risk assessment?
This term describes the shared values and behaviors that influence risk decisions.
What is risk culture?
Involves modifying a legitimate check to steal money or change the intended purpose of the payment.
What is altered check fraud?
This federal agency is responsible for enforcing the Bank Protection Act.
What is the Federal Deposit Insurance Corporation (FDIC)?
This risk stems from damage to a bank’s reputation due to negative publicity or misconduct.
What is reputational risk?
Two-part Question: This type of risk is often assessed using heat maps to visualize likelihood and impact. This type of risk assessment evaluates the effectiveness of controls in reducing risk.
What is inherent risk? What is residual risk?
This committee often reviews risk exposures and ensures alignment with strategy.
What is the risk management committee? What is BERM?
Type of card fraud where criminals use brute-force methods to guess valid credit card details.
What is a BIN Attack?
This year marked the passage of the Bank Protection Act in the United States.
What is 1968?
This type of risk management focuses on risks that could disrupt critical business functions.
What is business continuity management?
This type of control is designed to reduce the likelihood or impact of a risk event.
What is a mitigating control?
Two-part Question: This is the process of determining the financial impact of risks on an organization. This is the process on evaluating risks based on subjective criteria, like potential impact and likelihood.
What is quantitative risk analysis? What is qualitative risk analysis?