CCB Operational Risk & Control Testing 3

Question 1

Under the Basel III operational risk framework, which approach requires banks to calculate a business indicator component multiplied by internal loss multiplier?

Accepted Answer

Standardized Measurement Approach (SMA)

Answer

The Standardized Measurement Approach (SMA), introduced under Basel III final rules, uses the business indicator component combined with an internal loss multiplier based on historical losses.

Question 2

A compliance officer is designing a test plan for a new automated transaction monitoring system. Which testing type should be performed first?

Accepted Answer

Unit testing of individual rule components

Answer

Unit testing of individual components should occur first to ensure each rule or algorithm works correctly before integrated or user acceptance testing begins.

Question 3

What is the primary difference between a risk register and a risk heat map?

Accepted Answer

A risk register lists risks while a heat map visually plots risks by likelihood and impact

Answer

A risk register is a detailed list of identified risks with attributes, while a heat map provides a visual summary by mapping risks on a likelihood-versus-impact grid.

Question 4

During a control gap analysis, a compliance team discovers a preventive control is missing for a high-risk process. What type of control could serve as an interim measure?

Accepted Answer

Detective control

Answer

A detective control can serve as an interim measure by identifying when the unmitigated risk event occurs, even though it does not prevent the event.

Question 5

Which metric is most useful for measuring the effectiveness of a segregation of duties (SoD) control over time?

Accepted Answer

Percentage of transactions processed by a single individual without review

Answer

Tracking the percentage of transactions processed without a second reviewer directly measures whether the SoD control is being consistently applied.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Operational Risk & Control Testing 3