Fundamentals of Payments Risk Management Exam with verified detailed solutions

Fundamentals of Payments Risk Management Exam with || || || || || || ||




verified detailed solutions || ||




Primary Risk-6 - ✔✔Compliance
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Credit

Fraud

Operational

Systemic

Counterparty



Secondary/Ancillary Risk-11 - ✔✔Cross channel || || || ||




Direct Access ||




Legal

Liquidity

Reputation

Settlement

Strategic

Technology

Third Party
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Transmission

Transit



ACH Risks - ✔✔Compliance
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Credit

Fraud

,Operational

Systemic

Counterparty

Cross channel
||




Direct Access||




Legal

Liquidity

Reputation

Settlement

Strategic

Technology

Third Party
||




Transmission

Transit



Card, Check, Fed Now, RTP, Wire risks - ✔✔Compliance
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Credit

Fraud

Operational

Systemic

Counterparty

Cross channel
||




Legal

Liquidity

Reputation

Settlement

, Strategic

Technology

Third Party ||




Transmission

Transit



Risk-inherent with all payment methods. must ask.. - ✔✔what are the threats?
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how likely are they to occur?
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how quickly can they be identified?
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how much could it cost?
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Risk profile--know how to develop - ✔✔1-size of FI
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2-complexity of payment systems || || ||




3-frequency and $ || ||




4-types of payments || ||




5-payment delivery methods || ||




6-IT infrastructure
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7-dependency on third party/vendors || || ||




8-emergence new payment instruments || || ||




9-protection non public personal infromation || || || ||




Compliance Risk - ✔✔party of a transaction fails to comply, knowingly or inadvertently,
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with payment system rules and policies, regs, laws
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ACH Compliance Risk must follow... - ✔✔NACHA Operating Rules
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EFTA and Reg E || || ||