CORES Operational Risk Identification & Assessment 2

Question 1

Which technique involves creating a visual map of all processes, inputs, outputs, and risk points within a business unit?

Accepted Answer

Process flow mapping

Answer

Process flow mapping visually documents each step, handoff, and potential failure point within a business process to surface operational risks.

Question 2

A bank's operational risk team notices that the same data entry error type recurs monthly. Which risk identification approach is BEST suited to uncover the root cause?

Accepted Answer

Loss event analysis with fishbone diagrams

Answer

Loss event analysis combined with fishbone (Ishikawa) diagrams systematically traces recurring errors back to their root causes.

Question 3

In the Basel II/III operational risk framework, which of the following is NOT one of the seven Basel event-type categories?

Accepted Answer

Market Liquidity Disruption

Answer

Market Liquidity Disruption is a market risk concept; the seven Basel operational risk event types do not include it.

Question 4

When scoring risks on a heat map, 'velocity' refers to:

Accepted Answer

How quickly a risk can escalate from onset to significant impact

Answer

Velocity measures how rapidly a risk event can develop and cause harm, which affects response time requirements.

Question 5

Which assessment method asks managers to self-evaluate their unit's controls and risks using structured questionnaires or workshops?

Accepted Answer

Control Self-Assessment (CSA)

Answer

Control Self-Assessment (CSA) empowers business line managers to identify and evaluate their own risks and controls without waiting for external review.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Operational Risk Identification & Assessment 2