CRB Risk Management & Fraud Prevention

Question 1

What is the primary goal of risk management in banking?

Accepted Answer

To identify, assess, and control risks

Answer

To eliminate all customer complaints.

Answer

To increase advertising reach.

Answer

To create more branches.

Question 2

Which type of risk involves the possibility of loss due to system failures?

Accepted Answer

Operational risk

Answer

Credit risk.

Answer

Market risk.

Answer

Reputation risk.

Question 3

Which tool helps banks detect fraudulent activity?

Accepted Answer

Transaction monitoring systems

Answer

Customer loyalty program.

Answer

Social media marketing.

Answer

Branch expansion plans.

Question 4

What is phishing in the context of banking fraud?

Accepted Answer

Fake emails or messages to steal data

Answer

A new type of online banking feature.

Answer

A social media strategy.

Answer

An ATM upgrade system.

Question 5

How can employees help prevent fraud?

Accepted Answer

By being trained to detect and report suspicious activity

Answer

By ignoring irregular transactions.

Answer

By allowing unverified access.

Answer

By sharing customer data freely.

Question 6

What is the role of internal controls in fraud prevention?

Accepted Answer

To detect and prevent fraud through checks and balances

Answer

To limit customer complaints.

Answer

To market new products.

Answer

To promote employee bonuses.

Question 7

What is the purpose of a fraud risk assessment?

Accepted Answer

To identify and manage fraud risks

Answer

To evaluate customer satisfaction.

Answer

To reduce staff workload.

Answer

To increase operating hours.

Question 8

Which behavior may indicate potential insider fraud?

Accepted Answer

Bypassing normal procedures

Answer

Following standard processes.

Answer

Transparent communication.

Answer

Participating in training.

Question 9

Why is regular auditing important for fraud prevention?

Accepted Answer

To identify fraud and enforce accountability

Answer

To reduce paperwork.

Answer

To increase loan interest rates.

Answer

To limit employee access to systems.