Risk Assessment & Management Flashcards

In the context of SWIFT security, what is Relationship Management Application (RMA) used for?

Answer: Controlling which institutions can exchange messages with each other

RMA is a bilateral authorization mechanism that requires both counterparties to explicitly authorize message exchange, preventing unsolicited message flows.

Which regulatory framework specifically introduced requirements for banks to identify and assess de-risking impacts caused by withdrawing correspondent banking relationships?

Answer: FATF Guidance on Correspondent Banking

FATF's guidance on correspondent banking explicitly addresses de-risking, urging banks to manage risk proportionately rather than wholesale exit relationships.

A bank's SWIFT back-office system is compromised via a malicious PDF attachment. Under CSP, which mandatory control should have mitigated this attack?

Answer: Internet isolation of the SWIFT infrastructure

Mandatory Control 1.1 requires SWIFT-related infrastructure to be segregated from the internet and general IT environment to limit malware infection pathways.

What does a SWIFT Business Continuity (BC) plan specifically need to address for messaging infrastructure?

Answer: Redundant SWIFT connectivity and failover procedures for service restoration

BC plans must ensure redundant SWIFT connections and documented failover so payment flows can resume quickly after an outage.

A correspondent bank notices that an MT 910 confirmation was received but the corresponding MT 103 was never sent by their institution. What risk event does this most likely indicate?

Answer: Potential fraud — an unauthorized payment may have been sent in their name

An unexpected MT 910 confirmation with no matching outgoing MT 103 is a red flag indicating an unauthorized payment may have been executed using the institution's credentials.

Which metric is used in SWIFT gpi to measure the speed and transparency of cross-border payments?

Answer: Service Level Agreement (SLA) adherence rate

SWIFT gpi measures bank performance against SLA commitments for payment speed, end-to-end tracking, and fee transparency.

When assessing a new correspondent banking relationship, which factor in the Wolfsberg Questionnaire (CBDDQ) is most critical for evaluating AML risk?

Answer: The respondent's AML/CTF program maturity and governance

The CBDDQ prioritizes understanding the respondent's AML/CTF program, including policies, controls, training, and independent testing, as the core risk indicator.