APRP Risk Assessment & Mitigation 3

Question 1

Under Regulation E, what is the maximum liability for a consumer who reports an unauthorized electronic fund transfer within 2 business days of learning of the loss?

Accepted Answer

$50

Answer

Regulation E caps consumer liability at $50 if the unauthorized EFT is reported within 2 business days of learning of the loss.

Question 2

A key risk indicator (KRI) differs from a key performance indicator (KPI) in that a KRI:

Accepted Answer

Signals an increase in the likelihood of future risk events

Answer

KRIs are forward-looking metrics that warn of rising risk levels, while KPIs measure operational or financial performance.

Question 3

Which risk mitigation strategy is most appropriate for a risk with very low probability but potentially catastrophic financial impact?

Accepted Answer

Transfer the risk through insurance or contractual means

Answer

Insurance or contractual transfer is ideal for low-probability, high-severity risks because the premium cost is manageable and the potential loss is too severe to self-insure.

Question 4

In payments risk management, 'velocity checking' is used to mitigate which type of risk?

Accepted Answer

Fraud risk from rapid successive transactions

Answer

Velocity checks flag or block accounts or cards that generate an abnormally high number of transactions within a short period, a common fraud indicator.

Question 5

A risk control self-assessment (RCSA) is most valuable because it:

Accepted Answer

Engages business-line staff to identify and evaluate their own operational risks

Answer

RCSAs leverage frontline employees' operational knowledge to surface risks and evaluate control effectiveness in ways that top-down audits may miss.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Risk Assessment & Mitigation 3