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 Questions
What details you would present at the Board Meeting in respect of key risks affecting the XYZ Textiles Ltd.
Discuss the portfolio level risks in this portfolio. Is there any significant undiversified risk in this credit portfolio? If so,
Now, you have been asked to give a report to the Company's Management, which should contain the key risks affec
Defining the different stakeholders involved and assessing the impact upon them of the Risk.
Available Risk Treatment Options.
Explaining the Risk Maturity Level of the company.
Various types of Political Risks to which company can be exposed to
When Risk Manager was monitoring the risk of AML operations, he finds out some major risks for which he wants
analytics help in improve the existing processes in Anti- Money Laundering operations.
The Manager is looking at the viability of Credit Default Swap contracts. He learnt that it has similarities with credit i
insurance.
In the present days, banks face a lot of problems in collections from customers resulting in increase of NPAs. Hence
unworthy borrowers by reviewing their five C's of Credit. Briefly explain Five C’s of Credit which bank will review if AB
portfolio
What should RG and other members of the BOD do?
Identify the type of governance risk involved in ABC Limited?
The shareholding of foreign institutional investors is 10.4 percent. Which risk do they face and suggest appropriate to
Design any 5 risk scenarios in the following format out of risk scenarios given in Exhibits.

Risk Scenario Title

Scenario description
Impact of scenario
Current measures to manage risks
   Identify the Risks that may be possible and their nature.

   Scaling of these identified risks based on ICAI Guide on Risk Based Internal Audit.

Any three to four approaches to identify and assess the risk.

Course of action to be followed to treat these risks.
Matters on which Risk Governance Framework can define a policy statement. (4 Marks)
Risk Maturity Level and reasons for the same.
Discuss the SWOT analysis of Sunshine Ltd.
Briefly explain the political risk to be encountered by Sunshine Ltd.
Elucidate the types of exposures risks to be encountered by the company.
Discuss the efficacy of the Internal Financial Control System of Sunshine Ltd.
Explain briefly the key features of Reserve Bank of India guidelines on CDS.
Differentiate between Credit Insurance and Credit Default Swaps.
Explain the methods of Estimating Probability of Credit Default.
Main Risk that will be faced by bank in the proposed lending and what are its components.
Amount of Loan that you seem to be justified keeping the various factors. (2 Marks)
Expected loss on the amount of term you recommended if the probability of default is 4% and Loan Given Default (L
Calculate the Maximum Permissible Bank Finance (MPBF) as per the Tandon Committee Recommendations using t
Briefly explain the types of risks faced by the firm.
Prepare a sample risk register on dust and pollution risk faced in the activities of the firm.
Briefly explain the benefits of ‘Improved risk measurement and Management’ to the management.
Explain Corporate Governance referring to OECD guidelines and explain how the Board can shield against Corporat
What is the type of risk management that is to be initiated by the Board/Management so as to prevent frauds and fina
How can Credit Risk Management be upgraded to ensure that risk of default is kept to the minimum.
 Definewhat a pure risk is and distinguish it from other types of risks. Explain why insurance coverage for pure risk is
Why operational risk management is important for the management of a company to avoid losses whether insurable
What is the role and responsibility of the Risk Manager?

Design any 4 risk scenarios in the following format out of the risk scenarios given in the exhibits (15 Marks)

Risk Scenario
Brief description of the current scenario
Impact of the Scenario
Risks involved and ways to manage it
Identification of the present risks which the Bank may be exposed to.
Help in establishing an IT enabled operating system including cyber crime prevention and Risk Management and Go
Various risks that the resort is exposed to and consequence thereof.
Rate the above identified risks and potential of these risks to cause damage to the business.
Action plan to treat the risks including monitoring mechanism.
Analysis of potential risk associated with the project.
Suggest a risk management framework.
Elaborate the various risks being faced by the ABC Transportation Networks
Discuss the steps which have been taken by the management of ABC Transportation Networks to counter the risks a
Why cybercrimes are difficult to execute in developed countries?
What are the main threats that a bank faces from cyber-attacks? What are the remedies for such threats? Why pu
cyber-attacks?
How has the Indian regulatory system started to plug the loopholes in cyber risk management in banks?
(4 Marks)
(4 Marks)
S.No Questions Answer
22 Bad credit history has the impact on borrower's future. A BCO score is a powerful 2m%
32 Every unlisted company having a paid up share capital of ` 10 crore or more is not Audit committee
95 The Delphi technique is a method which involves getting opinion on a process…… from Regulator
1 Auditors have to use the following for risk assessment: Judgement and Intuition
69 Certain risks are called pure risks. In this kind of risks either a loss occurs or no Loss in the share market.
loss occurs. There is no scope for gain. Which of the following is not a pure risk?

3 Economic capital, in relation to a firm, is …………………… the amount of capital needed to ensure the solvency for a given risk profile.
97 Risks which occur even with no changes in the economy are classified as   Static risks
98 Poor morale and talent retention is a risk area for    Human Resources
41 A project has a cost of capital of 10% and a payback period of 2 years with annual 67.80 crore
cash inflows commencing from year end 2 to 4 of ` 60 crore. The initial
investment outlay at the beginning of year 1 shall be …………
4 Phishing is ……………….. a fraud technique to get access to the; victim's computer systems
91 The terms risk and uncertainty are often used in the corporate scenario. The a set of probabilities assigned to a set of possibilities
measurement of uncertainty is
77 Rise in ratio of Non Performing Assets of the Bank All of the above.
78 Instituting Risk Management System involves All of the above.
79 Risk Management framework must ……………. All of the above.
80 System of controls in the hotel industry helps in All of the above.
84 Risk based Internal Audit is effective in All of the above.
85 Units located in Export Processing Zone are allowed to …………… All of the above.
86 Nonadherence to terms of agreement can result in All of the above.
89 Risk Management System includes All of the above.
58 Risk culture requires…………. All of these
52 A company's decision to move into immature or emerging markets or to launch Ambiguity
products outside its core competencies is BEST known as
87 Assessing Risks associated with projects involves assessing all risks associated with the project
75 Deposits of the Bank indicates that ………. bank has not put in place system of retaining customers
9 draws a sample from the dataset and records its VaR. Bootstrap Simulation
54 According to ISO 31000 on keys to ERM implementation, which one of the Building ERM using small but solid steps
following keys would provide an opportunity to change and further tailor ERM
processes?
 6 A…...is the threat that an event or action will adversely affect an enterprise’s Business Risk
ability to maximize stakeholder value and to achieve its business objectives.
12 In Information Technology General Controls, under change management, the risk Change control audit trail not maintained
of incorrect change is NOT mainly due to
23 Risk measures are expected to correctly reflect diversification effects and facilitateCoherent risk measures
13 Annual Report of the Board of Directors must include a statement indicating the Companies Act, 2013
development and implementation of a risk management policy for a company.
This is mandated by
20 4.6. Annual Report of the Board of Directors must include a statement Companies Act, 2013
indicating the development and implementation of a risk management policy for
a company. This is mandated by
92 Which is not a drawback of Scenario Analysis? Considers the correlations between the risk factors
83 Food and beverage costing including event costing helps to continuous monitoring food cost including event cost helps in better management
of events ensuring decent margin
82 Financial control in the hotel industry helps in covering whole spectrum of the hotel enabling optimum use of resources
37 Which of the following is not the risk type that often overlaps or is caused by Credit Risk
operational failure?
33 What is the main source of worry to banks regarding their customers? Deficiencies in sale of third party investment products by lenders
66 In Annual Reports it is necessary to have a section on Management Discussion Details of managing insurance risks
and Analysis. One of the following is not necessary to be discussed in the above
section.
81 Standard Operating Procedure is a set of documents laying down policies and procedure to be followed in operation of the
hotel
96 Which of the following is not an internal risk? Economic factors as price fluctuations, changes in consumer preferences, inflation,
etc
25 Which one of the following that a company would LEAST likely choose as a com Enhance the level of risk maturity
70 Entry of Chinese content giant
What caused the start-up Clip to be taken over by another start-up?
39 More risk in a project can be incorporated by decreasing estimated future cash inflows from the project
2 The following is not one of simplest techniques for country risk assessment to Event Driven Method
rank the countries:
88 Nonadherence to risk management practice results in exposing the project to all risks associated with the project.
93 Which one of the following helps to related characteristics of an event to the Factor or Casual Analysis
probability and severity of the operational losses?
11 An excess payment made to a vendor, which is accounted correctly, would be Financial risk
categorized under which of the following risks?
46 The Delphi technique is a method which involves getting opinion on a process from Group of Individuals
68 The purpose of risk evaluation is to do the following. Which one of the following Get consensus from all concerned.
is not essential?
16 The risk manager would like to know the risk that refers to ineffective and Governance Risk
unethical management of a company by its executives and managerial levels. The
risk is known as
65 Insurable risks are most likely to arise from which of the following categorisation Hazard Risks.
of risks.
14 While taking a decision, the category risk profile bucket that would most likely to High Impact-Low Probability
escape attention of the Management is
17 While taking a decision, the category risk profile bucket that would most likely to High Impact-Low Probability
escape attention of the Management is
27 Which of the following is not an index for Country Risk Analysis? Human Perception Index
35 As per the risk has been defined as resulting from significant conditions, events, ICAI - SA 315
circumstances, actions or inactions that could adversely affect an entity’s ability
to achieve its objectives and execute its strategies, or from the setting of
inappropriate objectives and strategies.

74 What is the significant improvement in the internet start-up system? Improvement in the quality of entrepreneurs and start-up ideas
15 Governance risks mean significant deficiencies that can impact the reputation, Inability of the Board to identify trivial risk facts that can impact business continuity
existence and continuity of the organization. Such deficiencies would NOT occur
because of
26 Which of the following is called Governance Risk? Ineffective and unethical management of a company by its executives and
managerial levels
57 The proposed action of the management to provide training and safety programs Insurance Alternatives
would fall under
43 The purpose of Financial Swap is to reduce Interest Rate Risk & Exchange Rate Risk
42 Which of the following risk will not affect foreign exchange rate? Investment Risk
40 Risk Adjusted Discount Rate Method is based on the concept that investors demand higher returns from more risky projects
38 Technique involving acceleration of payments of hard currency and delaying Leading and Lagging
payments of soft currency payables to hedge forex exposure is called
61 A holistic risk management framework would empower the Board to ……… Point look back strategy made to ensure that best practices are continued
out the wrong answer
53 In case of Impact of Business Risk, the Impact area of 'customer' has the Loyalty
following nature of impact on
24 The following one is not the property for a coherent risk measure of Monatomicity
7 defines financial risk as the risk that the cash flow of an issuer will not be NASDAQ
adequate to meet its financial obligations.
50 Which one of the following would LEAST likely be included as a source of market Natural disasters
risk?
71 What does evidence show regarding picture about the internet start-up system? Number of start-up deals decreased in 2017 and 2018 from the respective year ago
periods.
21 OECD has developed set of principles for better corporate governance. The princi Overseeing the process of disclosure and communications
47 Which of the following is not an Internal risk? Physical factors such as fire in the factory, damages to goods in transit, etc
5 SMA-1 refers to the following classification basis Principal or interest payment not overdue between 31-60 days.
31 What is the most important advice that the RBI gave to banks to prevent bank Proactive fraud control initiatives.
frauds?
67 Credit risk is insurable and has various components as per list seen below except Rejection risk.
one - point out the exception.
48 The concept of risk-based maintenance is an advanced form of Reliability Centered Maintenance
90 The concept of risk-based maintenance is an advanced form of Reliability Centered Maintenance
36 Which of the following is not the classification of risk as stated by Enterprise Risk Residual risk
Management?
19 4.5. Which of the following would NOT be included as a principle in Risk appetite is about identifying opportunities.
determining the risk appetite of the company?
51 The managing director wanted to know the difference between Risk Capacity Risk Capacity is the overall ability and financial boundary within which the Board
and Risk Appetite. It can be BEST described as can play their business bets; whereas Risk Appetite is the hard stop limit within
which the Board would like to restrict its business actions
99 Which of the following is the view of Warren Buffet on the subject of Risk and R Risk comes from not knowing what you are doing
64 Normally every Board of a company should have a Risk Committee. Among other Risk Committee discusses every matter in the agenda of the Board prior to the
things the following are the duties of this Committee except one, which? Board Meeting.
29 OECD Guidelines for corporate governance does not include ……………. Role of shareholders
60 Corporate Governance risk is intended to identify deficiencies that can damage Sales growth
the following important existential aspects of the company.
49 Operational risk is an overarching concept interrelated with several other types of risk, and cannot be viewed in isolation
44 In case if principal or interest payment overdue between 61-180 days then as per SMA – 2
RBI’s framework for Revisiting Distressed Assets in Economy they are classified in
category of
76 Advances of the Bank ……… spread over all categories in line with the guidelines applicable to co-operative
banks on lending.
28 is necessary to evaluate all types of risks impacting all categories of stakeholders Stakeholder Risk Management
and find solutions to pre-empt the threats before the risk occurs.
73 Fall in deal volume is due to start-up eco system is starting to become more realistic about the potential of the
Consumer market
10 Which among the following are the characteristics of Risk Defined? Strategy and policy in place and communicated
8 Which among the following is not one of the Risk Management techniques? Tackle
18 Before commencement of the project, various risks factors have to be terminate the Project
considered for feasibility study. In a case where a project feasibility is based on a
particular land acquisition and the cost of treating it, in terms of legal fees is
much higher, the appropriate recommendation the consultant would provide is
to

45 Before commencement of the project, various risks factors have to be terminate the Project
considered for feasibility study. In a case where a project feasibility is based on a
particular land acquisition and the cost of treating it in terms of legal fees is
much higher, the appropriate recommendation the consultant would provide is
to ……………..

56 Which of the following is MOST likely the reason that prompted the bank to issue The bank felt that it is facing Risk Exposure
such a notice?
59 If the tolerable limit for exception was 6% in the case of cement mortar the control risk is high.
sampling, the most likely conclusion would be that
55 Instance of non-payment of income-tax on the due date would be most likely to the risk appetite of the firm is lower than its risk capacity.
show that
72 Reason for decline in the overall volume in new start-up formation is due to the threat posed by Chinese and American internet firms
62 Stress Tests are important for Banks and are an important aspect for To manage optimally business and portfolio downside movement
Board/Corporate Governance oversight. Choose the right reason for conducting
Stress Tests from the options given below
34 ABN-Amro Bank, Amsterdam, wants to purchase ` 15 million against US$ for fundin US$ 2,94,041.86
63 Credit risk mitigation in Banks is a key concern of the Board. It can include the Verification of assets.
following except one. Point out which answer is inappropriate?
30 Opportunities under Risk and Opportunity Disclosure in the Annual Report would Volatility in financial markets and fluctuations in exchange rates
not include
94 Risk probability and impact assessment generally finds answers to the following what is control in the business in similar type of industry
questions EXCEPT …………….
Case
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 Questions
Action plan to treat the risks including monitoring mechanism.
Amount of Loan that you seem to be justified keeping the various factors.
Analysis of potential risk associated with the project.
Any three to four approaches to identify and assess the risk.
Available Risk Treatment Options.
Briefly explain the benefits of ‘Improved risk measurement and Management’ to the management.
Briefly explain the political risk to be encountered by Sunshine Ltd.
Briefly explain the types of risks faced by the firm.
Calculate the Maximum Permissible Bank Finance (MPBF) as per the Tandon Committee Recommendations using th
Course of action to be followed to treat these risks.
Define what a pure risk is and distinguish it from other types of risks. Explain why insurance coverage for pure risk is
Defining the different stakeholders involved and assessing the impact upon them of the Risk.

Design any 4 risk scenarios in the following format out of the risk scenarios given in the exhibits (15 Marks)
Risk Scenario
Brief description of the current scenario
Impact of the Scenario
Risks involved and ways to manage it

Design any 5 risk scenarios in the following format out of risk scenarios given in Exhibits.
Risk Scenario Title
Scenario description
Impact of scenario
Current measures to manage risks
Differentiate between Credit Insurance and Credit Default Swaps.
Discuss the efficacy of the Internal Financial Control System of Sunshine Ltd.
Discuss the portfolio level risks in this portfolio. Is there any significant undiversified risk in this credit portfolio? If so
Discuss the steps which have been taken by the management of ABC Transportation Networks to counter the risks a
Discuss the SWOT analysis of Sunshine Ltd.
Elaborate the various risks being faced by the ABC Transportation Networks
Elucidate the types of exposures risks to be encountered by the company.
Expected loss on the amount of term you recommended if the probability of default is 4% and Loan Given Default (L
Explain briefly the key features of Reserve Bank of India guidelines on CDS.
Explain Corporate Governance referring to OECD guidelines and explain how the Board can shield against Corporate
Explain the methods of Estimating Probability of Credit Default.
Explaining the Risk Maturity Level of the company.
Help in establishing an IT enabled operating system including cyber crime prevention and Risk Management and Go
How can Credit Risk Management be upgraded to ensure that risk of default is kept to the minimum.
How has the Indian regulatory system started to plug the loopholes in cyber risk management in banks?
Identification of the present risks which the Bank may be exposed to.
Identify the Risks that may be possible and their nature.
Identify the type of governance risk involved in ABC Limited?
In the present days, banks face a lot of problems in collections from customers resulting in increase of NPAs. Hence
to unworthy borrowers by reviewing their five C's of Credit. Briefly explain Five C’s of Credit which bank will review
portfolio
Main Risk that will be faced by bank in the proposed lending and what are its components.
Matters on which Risk Governance Framework can define a policy statement.
Now, you have been asked to give a report to the Company's Management, which should contain the key risks affec
Prepare a sample risk register on dust and pollution risk faced in the activities of the firm.
Rate the above identified risks and potential of these risks to cause damage to the business.
Risk Maturity Level and reasons for the same.
Scaling of these identified risks based on ICAI Guide on Risk Based Internal Audit.
Suggest a risk management framework.
The Manager is looking at the viability of Credit Default Swap contracts. He learnt that it has similarities with credit
insurance.
The shareholding of foreign institutional investors is 10.4 percent. Which risk do they face and suggest appropriate t
Various risks that the resort is exposed to and consequence thereof.
Various types of Political Risks to which company can be exposed to
What are the main threats that a bank faces from cyber-attacks? What are the remedies for such threats? Why pub
cyber-attacks?
What details you would present at the Board Meeting in respect of key risks affecting the XYZ Textiles Ltd.
What is the role and responsibility of the Risk Manager?
What is the type of risk management that is to be initiated by the Board/Management so as to prevent frauds and fi
What should RG and other members of the BOD do?
When Risk Manager was monitoring the risk of AML operations, he finds out some major risks for which he wants
analytics help in improve the existing processes in Anti- Money Laundering operations.
Why cybercrimes are difficult to execute in developed countries?
Why operational risk management is important for the management of a company to avoid losses whether insurabl
(4 Marks)
(4 Marks)
 1 mark Alpha
S.No Questions Answer Case number
1 Auditors have to use the following for risk assessment: Judgement and Intuition C-1
2 The following is not one of simplest techniques for country risk assessment to rank the Event Driven Method C-1
countries:
3 Economic capital, in relation to a firm, is …………………… the amount of capital needed to ensure the solvency for a given risk profile. C-1
4 Phishing is ……………….. a fraud technique to get access to the; victim's computer systems C-1
5 SMA-1 refers to the following classification basis Principal or interest payment not overdue between 31-60 days. C-1
6 A…...is the threat that an event or action will adversely affect an enterprise’s ability to maximize Business Risk C-2
stakeholder value and to achieve its business objectives.
7 defines financial risk as the risk that the cash flow of an issuer will not be adequate to meet its NASDAQ C-2
financial obligations.
8 Which among the following is not one of the Risk Management techniques? Tackle C-2
9 draws a sample from the dataset and records its VaR. Bootstrap Simulation C-2
10 Which among the following are the characteristics of Risk Defined? Strategy and policy in place and communicated C-2
11 An excess payment made to a vendor, which is accounted correctly, would be categorized under Financial risk C-3
which of the following risks?
12 In Information Technology General Controls, under change management, the risk of incorrect Change control audit trail not maintained C-3
change is NOT mainly due to
13 Annual Report of the Board of Directors must include a statement indicating the development Companies Act, 2013 C-3
and implementation of a risk management policy for a company. This is mandated by
14 While taking a decision, the category risk profile bucket that would most likely to escape High Impact-Low Probability C-3
attention of the Management is
15 Governance risks mean significant deficiencies that can impact the reputation, existence and Inability of the Board to identify trivial risk facts that can impact business continuity C-3
continuity of the organization. Such deficiencies would NOT occur because of
16 The risk manager would like to know the risk that refers to ineffective and unethical Governance Risk C-4
management of a company by its executives and managerial levels. The risk is known as
17 While taking a decision, the category risk profile bucket that would most likely to escape High Impact-Low Probability C-4
attention of the Management is
18 Before commencement of the project, various risks factors have to be considered for feasibility terminate the Project C-4
study. In a case where a project feasibility is based on a particular land acquisition and the cost
of treating it, in terms of legal fees is much higher, the appropriate recommendation the
consultant would provide is to

19 Which of the following would NOT be included as a principle in determining the risk appetite of Risk appetite is about identifying opportunities. C-4
the company?
20 Annual Report of the Board of Directors must include a statement indicating the development Companies Act, 2013 C-4
and implementation of a risk management policy for a company. This is mandated by
21 OECD has developed set of principles for better corporate governance. The principle of Disclosu Overseeing the process of disclosure and communications C-5
22 Bad credit history has the impact on borrower's future. A BCO score is a powerful measure of the 2% cr C-5
23 Risk measures are expected to correctly reflect diversification effects and facilitate effective decisCoherent risk measures C-5
24 The following one is not the property for a coherent risk measure of Monatomicity C-5
25 Which one of the following that a company would LEAST likely choose as a common risk manage Enhance the level of risk maturity C-5
26 Which of the following is called Governance Risk? Ineffective and unethical management of a company by its executives and C-6
managerial levels
27 Which of the following is not an index for Country Risk Analysis? Human Perception Index C-6
28 is necessary to evaluate all types of risks impacting all categories of stakeholders and find Stakeholder Risk Management C-6
solutions to pre-empt the threats before the risk occurs.
29 OECD Guidelines for corporate governance does not include ……………. Role of shareholders C-6
30 Opportunities under Risk and Opportunity Disclosure in the Annual Report would not include Volatility in financial markets and fluctuations in exchange rates C-6
31 What is the most important advice that the RBI gave to banks to prevent bank frauds? Proactive fraud control initiatives. C-7
32 How RBI ensures to prevent money landuering activities? All Cash Transcations of more than 10,00,000 requires an aadhar number C-7
33 Every unlisted company having a paid up share capital of ` 10 crore or more is not required to con Audit committee C-7
34 What is the main source of worry to banks regarding their customers? Deficiencies in sale of third party investment products by lenders C-7
35 ABN-Amro Bank, Amsterdam, wants to purchase ` 15 million against US$ for funding their Vostro US$ 2,94,041.86 C-7
36 As per the risk has been defined as resulting from significant conditions, events, ICAI - SA 315 C-8
circumstances, actions or inactions that could adversely affect an entity’s ability to achieve its
objectives and execute its strategies, or from the setting of inappropriate objectives and
strategies.

37 Which of the following is not the classification of risk as stated by Enterprise Risk Management? Residual risk C-8

38 Which of the following is not the risk type that often overlaps or is caused by operational failure? Credit Risk C-8

39 Technique involving acceleration of payments of hard currency and delaying payments of soft Leading and Lagging C-8
currency payables to hedge forex exposure is called
40 More risk in a project can be incorporated by decreasing estimated future cash inflows from the project C-8
41 Risk Adjusted Discount Rate Method is based on the concept that investors demand higher returns from more risky projects C-9
42 A project has a cost of capital of 10% and a payback period of 2 years with annual cash inflows 67.80 crore C-9
commencing from year end 2 to 4 of ` 60 crore. The initial investment outlay at the beginning of
year 1 shall be …………
43 Which of the following risk will not affect foreign exchange rate? Investment Risk C-9
44 The purpose of Financial Swap is to reduce Interest Rate Risk & Exchange Rate Risk C-9
45 In case if principal or interest payment overdue between 61-180 days then as per RBI’s SMA – 2 C-9
framework for Revisiting Distressed Assets in Economy they are classified in category of
46 Before commencement of the project, various risks factors have to be considered for feasibility terminate the Project C-10
study. In a case where a project feasibility is based on a particular land acquisition and the cost
of treating it in terms of legal fees is much higher, the appropriate recommendation the
consultant would provide is to ……………..

47 The Delphi technique is a method which involves getting opinion on a process from Group of Individuals C-10
48 Which of the following is not an Internal risk? Physical factors such as fire in the factory, damages to goods in transit, etc C-10
49 The concept of risk-based maintenance is an advanced form of Reliability Centered Maintenance C-10
50 Operational risk is an overarching concept interrelated with several other types of risk, and cannot be viewed in isolation C-10
51 Which one of the following would LEAST likely be included as a source of market risk? Natural disasters C-11
52 The managing director wanted to know the difference between Risk Capacity and Risk Appetite. Risk Capacity is the overall ability and financial boundary within which the Board C-11
It can be BEST described as can play their business bets; whereas Risk Appetite is the hard stop limit within
which the Board would like to restrict its business actions
53 A company's decision to move into immature or emerging markets or to launch products outside Ambiguity C-11
its core competencies is BEST known as
54 In case of Impact of Business Risk, the Impact area of 'customer' has the following nature of Loyalty C-11
impact on
55 According to ISO 31000 on keys to ERM implementation, which one of the following keys would Building ERM using small but solid steps C-11
provide an opportunity to change and further tailor ERM processes?
56 Instance of non-payment of income-tax on the due date would be most likely to show that the risk appetite of the firm is lower than its risk capacity. C-12
57 Which of the following is MOST likely the reason that prompted the bank to issue such a notice? The bank felt that it is facing Risk Exposure C-12

58 The proposed action of the management to provide training and safety programs would fall Insurance Alternatives C-12
under
59 Risk culture requires…………. All of these C-12
60 If the tolerable limit for exception was 6% in the case of cement mortar sampling, the most likely the control risk is high. C-12
conclusion would be that
61 Corporate Governance risk is intended to identify deficiencies that can damage the following Sales growth C-13
important existential aspects of the company.
62 A holistic risk management framework would empower the Board to ……… Point out the wrong look back strategy made to ensure that best practices are continued C-13
answer
63 Stress Tests are important for Banks and are an important aspect for Board/Corporate To manage optimally business and portfolio downside movement C-13
Governance oversight. Choose the right reason for conducting Stress Tests from the options
given below
64 Credit risk mitigation in Banks is a key concern of the Board. It can include the following except Verification of assets. C-13
one. Point out which answer is inappropriate?
65 Normally every Board of a company should have a Risk Committee. Among other things the Risk Committee discusses every matter in the agenda of the Board prior to the C-13
following are the duties of this Committee except one, which? Board Meeting.
66 Insurable risks are most likely to arise from which of the following categorisation of risks. Hazard Risks. C-14
67 In Annual Reports it is necessary to have a section on Management Discussion and Analysis. One Details of managing insurance risks C-14
of the following is not necessary to be discussed in the above section.
68 Credit risk is insurable and has various components as per list seen below except one - point out Rejection risk. C-14
the exception.
69 The purpose of risk evaluation is to do the following. Which one of the following is not essential? Get consensus from all concerned. C-14

70 Certain risks are called pure risks. In this kind of risks either a loss occurs or no loss occurs. There Loss in the share market. C-14
is no scope for gain. Which of the following is not a pure risk?
71 What caused the start-up Clip to be taken over by another start-up? Entry of Chinese content giant C-15
72 What does evidence show regarding picture about the internet start-up system? Number of start-up deals decreased in 2017 and 2018 from the respective year ago C-15
periods.
73 Reason for decline in the overall volume in new start-up formation is due to the threat posed by Chinese and American internet firms C-15
74 Fall in deal volume is due to start-up eco system is starting to become more realistic about the potential of the C-15
Consumer market
75 What is the significant improvement in the internet start-up system? Improvement in the quality of entrepreneurs and start-up ideas C-15
76 Deposits of the Bank indicates that ………. bank has not put in place system of retaining customers C-16
 77 Advances of the Bank ……… spread over all categories in line with the guidelines applicable to co-operative C-16
banks on lending.
78 Rise in ratio of Non Performing Assets of the Bank All of the above. C-16
79 Instituting Risk Management System involves All of the above. C-16
80 Risk Management framework must ……………. All of the above. C-16
81 System of controls in the hotel industry helps in All of the above. C-17
82 Standard Operating Procedure is a set of documents laying down policies and procedure to be followed in operation of the C-17
hotel
83 Financial control in the hotel industry helps in covering whole spectrum of the hotel enabling optimum use of resources C-17
84 Food and beverage costing including event costing helps to continuous monitoring food cost including event cost helps in better management C-17
of events ensuring decent margin
85 Risk based Internal Audit is effective in All of the above. C-17
86 Units located in Export Processing Zone are allowed to …………… All of the above. C-18
87 Nonadherence to terms of agreement can result in All of the above. C-18
88 Assessing Risks associated with projects involves assessing all risks associated with the project C-18
89 Nonadherence to risk management practice results in exposing the project to all risks associated with the project. C-18
90 Risk Management System includes All of the above. C-18
91 The concept of risk-based maintenance is an advanced form of Reliability Centered Maintenance C-19
92 The terms risk and uncertainty are often used in the corporate scenario. The measurement of a set of probabilities assigned to a set of possibilities C-19
uncertainty is
93 Which is not a drawback of Scenario Analysis? Considers the correlations between the risk factors C-19
94 Which one of the following helps to related characteristics of an event to the probability and Factor or Casual Analysis C-19
severity of the operational losses?
95 Risk probability and impact assessment generally finds answers to the following questions what is control in the business in similar type of industry C-19
EXCEPT …………….
96 The Delphi technique is a method which involves getting opinion on a process…………. from Regulator C-20
97 Which of the following is not an internal risk? Economic factors as price fluctuations, changes in consumer preferences, inflation, C-20
etc
98 Risks which occur even with no changes in the economy are classified as   Static risks C-20
99 Poor morale and talent retention is a risk area for    Human Resources C-20
100 Which of the following is the view of Warren Buffet on the subject of Risk and Risk Management Risk comes from not knowing what you are doing C-20