CORES Regulatory Compliance & Industry Standards 3

Question 1

Under the Dodd-Frank Act, the Consumer Financial Protection Bureau (CFPB) has supervisory authority over which type of institution?

Accepted Answer

Non-bank financial companies and large banks with assets over $10 billion

Answer

The CFPB supervises non-bank financial companies and depository institutions with assets exceeding $10 billion.

Question 2

ISO 31000:2018 defines risk as:

Accepted Answer

The effect of uncertainty on objectives

Answer

ISO 31000:2018 defines risk as 'the effect of uncertainty on objectives,' encompassing both positive and negative impacts.

Question 3

A bank's compliance program identifies that its third-party vendor lacks adequate AML controls. Under OCC guidance, the bank's PRIMARY obligation is to:

Accepted Answer

Conduct enhanced due diligence and require the vendor to remediate deficiencies

Answer

OCC guidance on third-party risk requires banks to conduct enhanced due diligence and ensure vendors meet equivalent compliance standards.

Question 4

Which Basel Committee publication introduced the standardized approach for measuring operational risk capital under Basel III reforms (Basel IV)?

Accepted Answer

The Standardized Measurement Approach (SMA) finalization document

Answer

The Basel Committee finalized the Standardized Measurement Approach (SMA) in 2017 to replace internal models for operational risk capital.

Question 5

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

Accepted Answer

$50

Answer

Regulation E caps consumer liability at $50 for unauthorized EFTs reported within 2 business days of discovery.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Regulatory Compliance & Industry Standards 3