FREE FCA Risk Management Questions and Answers
Why is customer due diligence (CDD) important?
customer due diligence (CDD) is important to prevent money laundering, terrorist financing ,and other financial crimes by verifying the identity of customers and assessing their financial risk.
Compliance procedures are put in place to ensure that businesses follow laws ,regulations, and ethical standards in their operations.
common components of compliance procedures include conducting risk assessments, monitoring activities, and reporting any non-compliance issues,
Which of the following is a common technique used in risk assessment?
Please select 2 correct answers
swot analysis and pestle analysis are commonly used techniques in risk assessment to identify strengths, weaknesses, opportunities, threats ,political, economic, social, technological, legal ,and environmental factors affecting an organization's risk profile.
Why is ethical conduct important in the financial industry?
ethical conduct is important in the financial industry as it helps build trust and confidence among stakeholders.
How often does the FCA typically review and update its risk management guidelines and regulations?
The FCA typically reviews and updates its risk management guidelines and regulations annually to adapt to changing market conditions and emerging risks.
What are some examples of unethical conduct in the financial industry?
examples of unethical conduct in the financial industry include providing false information, disclosing confidential information ,and engaging in insider trading.
Why is it important for financial firms to have robust compliance procedures?
having strong compliance procedures helps financial firms protect the interests of their customers and investors, ensuring trust and transparency in the financial system.
What is customer due diligence (CDD)?
customer due diligence (CDD) is the process of assessing the risk of a customer before conducting any financial transactions to prevent money laundering and other financial crimes.
In risk management, what is the purpose of risk assessment ?
Risk assessment is crucial in risk management as it helps to identify, evaluate ,and prioritize potential risks that could impact the organization.
What is ethical conduct?
Ethical conduct involves acting in a way that is honest, fair, and considers the well-being of others.
What is the purpose of compliance produres in financial services?
compliance procedures are put in place to ensure that businesses follw laws, regulations,and ethical standards in their operations.