CQIB COMPLETE QUESTIONS AND CORRECT ANSWERS | GRADED AND THE LATEST SERIES

CQIB COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
Three regulators of financial services industry:


Ans: FMA, RBNZ, Commerce Commission


Question: CoFR


Ans: FMA< RBNZ, Commerce Commission, Treasury, MBIE


Question: Does the CoFR have regulatory or policy decision making powers?


Ans: No


Question: Is the CoFR statutory or non statutory


Ans: non statutory


Question: Macro prudential risk


Ans: Where the fragility of a bank or financial insto can affect the market or
economy as a whole


Question: Speculative risk


Ans: Where there is a chance of loss or gain, based on a decision to accept or
decline the risk


Question: Speculative risk eg

,Ans: Horse racing


Question: Absolute risk


Ans: Where there is a chance of loss or no loss but no gain


Question: Absolute risk e.g.


Ans: Car crash


Question: Risk appetite


Ans: The amount of risk that an organisation is willing to take to meet their
strategic objectives


Question: 1st line of risk defence


Ans: Business operations


Question: Business operations as a line of risk defence:


Ans: - day to day risk management activities
- Follow a risk process
- apply internal controls and risk responses


Question: risk and compliance functions as a line of risk defence

, Ans: - Review and challenge risk management processes
- Provide guidance and direction
- Dev risk management frameworks


Question: 2nd line of risk defence


Ans: Risk and compliance functions


Question: 3rd line of risk defence


Ans: Internal audit


Question: Internal audit as a line of risk defence


Ans: - Review 1st and 2nd line
- Independent persepective
- Objective assessment and assurance


Question: ISO 31000 Risk Management Principles and Guidelines