Risk Management & Assessment Flashcards

A business continuity plan (BCP) is designed primarily to:

Answer: Maintain or restore critical operations during and after a disruption

A BCP outlines how essential functions continue or resume after events like outages or disasters.

Which document serves as a central record of identified risks, owners, ratings, and mitigation actions?

Answer: Risk register

A risk register tracks each risk with its assessment, owner, and response plan.

A teller notices a check with mismatched fonts, an altered payee name, and a requested immediate cash payout. What should the teller do?

Answer: Place a hold and escalate per check fraud procedures

Visible alterations are classic counterfeit or altered check signs requiring escalation and verification.

Which statement about inherent risk is correct?

Answer: It is risk before considering any controls

Inherent risk is the raw level of exposure before any mitigating controls are considered.

A customer receives an email appearing to be from the bank asking them to click a link and verify their password. This is an example of:

Answer: Phishing

Phishing uses fraudulent messages impersonating trusted entities to steal credentials.

Segregation of duties is most effective at reducing which risk?

Answer: One individual both committing and concealing fraud or errors

Splitting authorization, custody, and recordkeeping prevents one person from controlling an entire transaction.

Continuing to offer a low-risk service while knowingly budgeting for occasional small losses is an example of:

Answer: Risk acceptance

Risk acceptance means acknowledging a risk and choosing to absorb its potential cost.