CRB Risk Management & Fraud Prevention 3

Question 1

A bank's risk appetite statement most accurately describes:

Accepted Answer

The types and amounts of risk the bank is willing to accept to achieve its objectives

Answer

A risk appetite statement formally defines the level and types of risk a bank is willing to take in pursuit of its strategic and financial goals.

Question 2

Which fraud scheme involves criminals convincing bank employees to bypass security procedures through phone calls impersonating regulators or executives?

Accepted Answer

Pretexting

Answer

Pretexting involves creating a fabricated scenario to manipulate employees into disclosing information or bypassing controls, often impersonating authority figures.

Question 3

A customer opens multiple accounts with small balances and gradually builds up deposits before conducting a large fraudulent withdrawal. This structuring behavior related to fraud is best described as:

Accepted Answer

Layering

Answer

Layering is the second stage of money laundering where funds are moved through complex transactions to obscure their origin.

Question 4

Under Basel III requirements, the Liquidity Coverage Ratio (LCR) is designed to ensure banks can withstand:

Accepted Answer

A 30-day period of significant liquidity stress

Answer

The LCR requires banks to hold enough high-quality liquid assets to cover total net cash outflows over a 30-day stress scenario.

Question 5

When a fraudster uses a stolen identity to open new credit accounts, this is categorized as:

Accepted Answer

New account fraud

Answer

New account fraud involves opening accounts in another person's name using stolen personally identifiable information.

(CRB) Certified Retail Banker Practice Test

(CRB) Certified Retail Banker Practice Test

CRB Risk Management & Fraud Prevention 3