A. Reduce retained earning - by increasing dividends in order to return funds to investors and improve reputation.
B. Improve retained earnings - by increasing net income or reducing dividends in order to increase risk capacity.
C. Improve quality of risks - pursue lower rewarding risks with better prospects.
D. Reduce scale of risks - shrink balance sheet or activity levels.
A. The loss amount is split into credit and operational risk components.
B. The entire loss amount is treated as operational risk.
C. The entire loss amount is treated as credit risk
D. The entire loss amount is treated as credit risk, but the loss is entered as a memorandum within the operational loss database and not used for capital modeling purposes.
A. Environmental. Social and corporate Governance.
B. Enhanced Social Governance.
C. Environmental. Strategy, and corporate Governance.
D. Extra Social Governance.
A. A zero risk appetite is illegal under all known regulations.
B. It means that there can be a risk self assessment workshop for the compliance department.
C. It will result in a compliance investigation conducted by the first line.
D. An organization may decide that it will accept a certain level of outstanding compliance issues and thus will breach such an appetite statement.
A. The collapse of Lehman Brothers into bankruptcy in 2002.
B. The collapse of Lehman Brothers into bankruptcy m 2008.
C. The Singapore earthquake of January 17th 1995.
D. The Kobe earthquake of January 17th 1995.
A. Amount of risk the regulator sets for the bank.
B. Amount of risk the bank wishes to take.
C. Ability to suffer an extreme event with an orderly wind up with only shareholders losing money.
D. Ability to withstand an extreme event and make a profit.
