CBA Risk Management 1

Question 1

What is the primary objective of risk management in banking?

Accepted Answer

To minimize potential losses and ensure stability

Answer

To increase advertising budget

Answer

To improve employee retention

Answer

To attract new shareholders

Question 2

Which of the following is considered a market risk?

Accepted Answer

Change in interest rates

Answer

Employee turnover

Answer

Cybersecurity breach

Answer

Internal policy violation

Question 3

What is the role of stress testing in risk management?

Accepted Answer

To evaluate resilience under adverse scenarios

Answer

To estimate employee satisfaction

Answer

To measure actual performance

Answer

To test new banking software

Question 4

Which type of risk is associated with borrower default?

Accepted Answer

Credit risk

Answer

Liquidity risk

Answer

Operational risk

Answer

Reputation risk

Question 5

How does diversification help in risk management?

Accepted Answer

Reduces risk by spreading exposure

Answer

Increases return on equity

Answer

Eliminates all risks

Answer

Minimizes tax liabilities

Question 6

Which department typically oversees enterprise risk management in a bank?

Accepted Answer

Risk management department

Answer

Compliance department

Answer

Human resources department

Answer

Customer service department