APRP Operational Risk Management 2

Question 1

In payment risk management, what does a 'four-eyes principle' control primarily prevent?

Accepted Answer

Unauthorized or erroneous actions by a single individual

Answer

The four-eyes principle requires that at least two people must authorize or review a significant action, reducing the risk of error or unauthorized activity by any single individual.

Question 2

A payment firm identifies that a key third-party processor has no documented disaster recovery plan. What risk management action should be taken first?

Accepted Answer

Issue a formal finding and require the vendor to remediate within a defined timeframe

Answer

The appropriate first action is to document the finding, communicate it to the vendor, and require remediation within an agreed timeframe as part of vendor risk management.

Question 3

What is the main goal of scenario analysis in payment operational risk management?

Accepted Answer

To estimate the impact of rare but high-severity events that may not be captured in historical data

Answer

Scenario analysis helps organizations estimate the potential impact of rare, severe operational risk events that historical loss data may not adequately represent.

Question 4

Which of the following best describes 'concentration risk' in payment operations?

Accepted Answer

Risk from over-reliance on a single vendor, geography, or technology for critical payment functions

Answer

Concentration risk arises when an organization is overly dependent on a single vendor, region, or technology, making it vulnerable if that single source fails.

Question 5

An organization's operational loss data shows a spike in internal processing errors following a core system upgrade. What is the most appropriate operational risk response?

Accepted Answer

Conduct a root cause analysis and implement corrective controls

Answer

A root cause analysis identifies what went wrong during the upgrade, enabling targeted corrective controls to prevent recurrence.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Operational Risk Management 2