BMO Quality Assurance & Improvement 4

Question 1

BMO's fraud detection team wants to reduce false positives (legitimate transactions flagged as fraud). Which quality metric should they track?

Accepted Answer

Precision (positive predictive value)

Answer

Precision measures what proportion of flagged items are true positives, directly tracking false positive rates.

Question 2

What is the main purpose of an 'after-action review' following a service outage at a bank?

Accepted Answer

Document lessons learned to prevent recurrence

Answer

After-action reviews capture what happened, why it happened, and what can be done differently to prevent future occurrences.

Question 3

A quality team identifies that wait times at a BMO branch vary widely. Before solving the problem, they should first:

Accepted Answer

Collect and analyze data to understand the magnitude and pattern of variation

Answer

Quality improvement requires data-driven understanding of the problem before solutions are developed to avoid fixing the wrong thing.

Question 4

Which of the following is an example of 'internal quality failure cost' at a bank?

Accepted Answer

Rework time spent correcting data entry errors before processing

Answer

Internal failure costs are incurred from defects caught before the product or service reaches the customer, such as rework.

Question 5

A bank implements daily 'stand-up' meetings where teams review yesterday's errors and plan corrections. This practice best aligns with which quality philosophy?

Accepted Answer

Kaizen (continuous small improvements)

Answer

Kaizen emphasizes frequent, incremental improvements through daily reflection and small adjustments rather than large periodic projects.

(BMO) Bank of Montreal Assessment Practice Test

(BMO) Bank of Montreal Assessment Practice Test

BMO Quality Assurance & Improvement 4