1
A bank is involved in a money‑laundering scandal. Customers lose trust and close accounts. What type of risk is this?
Ulteapronita kris
Reputational Risk
Which risk is one of the three core risks banks must hold capital against?
Market Risk
Internal system failures result in processing errors and customer complaints. What type of risk is this?
Operational Risk
Equity risk refers to:
A. Fluctuations in bond ratings
B. Changes in stock prices
C. Changes in commodity prices
D. Changes in foreign exchange rates
B. Changes in stock prices
Risk that changes in interest rates will affect investment value.
Unscramble: T R E T N E I S T A R E K S I
Interest Rate Risk
A risk that results from the actions of the company's employees.
Indirect Risk
Liquidity risk includes two main components:
A. Credit & operational
B. Market & product
C. Funding liquidity & market liquidity
D. Price & demand
C. Funding liquidity & market liquidity
A bank suffers heavy losses because an employee commits fraud over time. Customers question whether their money is safe.
Reputational Risk
A risk that results from the actions of a partner or supplier.”
Unscramble: T A N G T I E A L N
Tangential
Multiple borrowers default during an economic downturn, especially in retail and hospitality. What type of risk is this?
Credit Risk
A bank delays giving cash to a few customers. Other depositors panic and withdraw funds. What risk does this represent?
Liquidity Risk
Reputational risk differs from operational risk because it focuses on:
A. System failures
B. Market volatility
C. Customer and public perception
D. Loan defaults
C. Customer and public perception
Describes how quickly something can be converted to cash.”
Unscramble: I L Q Y I D U I T
Liquidity
Failure to follow AML regulations and file suspicious activity reports is an example of
Compliance risk
Which of the following is not a driver of reputational risk?
A. Unethical behavior
B. Data breaches
C. Strong corporate governance
D. Social media backlash
C. Strong corporate governance
Risk of losses due to price changes in oil, gold, or agricultural products.
Unscramble: M C O I T O D Y M R K S I
Commodity Risk
Credit risk primarily arises when a borrower:
A. Pays early
B. Fails to meet contractual obligations
C. Changes their address
D. Makes a large deposit
B. Fails to meet contractual obligations
A bank faces penalties for violating data privacy regulations. Which risk is this?
Compliance Risk