module four Flashcards

1
Q

Strategic risk

A

risk created by organisations business strategy

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2
Q

Operational risks

A

major risks stopping an organisation to do its strategic plan

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3
Q

Legal risks

A

regulator risk is the risk of changes to regulations including the potential for fines and penalties.

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4
Q

Reputational risk

A

a threat or danger to the good name or standing of an organisation.

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5
Q

Financial risk

A

arise where there is danger or possibility that the organisation and its shareholders will lose money

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6
Q

Credit risk

A

the risk that borrowers will not repay their loan. Interest rate risk arises from the impact of movements of interest rates

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7
Q

Liquidity risk

A

the risk a bank doesn’t have enough readily available funds to finance its day to day operations

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8
Q

Systemic risks

A

a further risk to the financial sector.

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9
Q

Holistic approach

A

An approach that recognises the affects between risks.

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10
Q

Governance and culture

A

strong risk culture is that everyone’s responsible with the governance setting everyones tone

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11
Q

Strategy and objective setting

A

work together in strategic planning process

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12
Q

Performance

A

risks are identified, assessed and responded to

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13
Q

Review and revision

A

reviewing means organisations can consider risk then can see what needs to be revised.

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14
Q

Information, communication and reporting

A

risk management requires sharing information across the organisation.

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15
Q

Credit risk

A

the risk borrowers wont repay their loan

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16
Q

Screening

A

important to have an understanding of the business

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17
Q

Monitoring and controlling

A

Important for bank to manage risks on all the loans

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18
Q

Credit risk management

A

monitoring and controlling performance of banks to control its risk exposure.

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19
Q

Measuring credit risk

A

Enables lender to calculate likelihood of borrower defaulting on a loan to ensure default rates are kept low

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20
Q

Algorithm and machine learning risk

A

Concerns that algorithms will make decisions alone

21
Q

Strategy and governance

A

should include: principles, policies, standards, roles, responsibilities, control processes, procedures, appropriate people selection and training

22
Q

Design, development, deployment and use

A

develop processes aligned with governance structure to address algorithm

23
Q

Monitoring and testing

A

assess and oversee algorithm data

24
Q

climate change risk

A

financial system could be damaged and financial stability threatened.

25
Q

Physical risks

A

direct impacts of climate-related hazards on human and natural systems

26
Q

Transition risks

A

arise from transition to low carbon economy

27
Q

Liability risks

A

those who seek compensation for damage due to climate change

28
Q

Standard asset risk

A

Assets suffered from unanticipated write-downs. Write-down is a term for the reduction of an asset when its ‘fair market value’ has fallen below its book value

29
Q

Physical risk

A

direct impacts of climate-related hazards on human and natural systems

30
Q

Acute physical risks

A

driven by an event with a short term impact.

31
Q

Chronic physical risks

A

arise from gradual, longer-term impacts.

32
Q

Transition risks

A

Risks that arise from transition to a low-carbon economy including. Risks from development in climate policy, legislation and regulation.

33
Q

Climate policy, legislation and regulation

A

Charge fees for burning of carbon based fuels

34
Q

Lower-carbon technologies

A

Occur when new, lower-carbon technologies replace existing

35
Q

Reputation

A

An organisations reputation could be damaged if associated with high-carbon methods of production and distribution leading to less demand for products and services.

36
Q

Liability risks

A

The risk that parties who suffered loss or damage from effects of climate change seek compensation from those held responsible

37
Q

Opportunities

A

Opportunities for financial organisations to get on the right side of low-carbon transition

38
Q

Data compromise

A

Threat of loss through cyber-attacks which are on the increase posing a major threat to banks and other organisations.

39
Q

IT disruption

A

this can cause major disruption to a banks internal IT systems.

40
Q

IT failure

A

risk of failure of banks internal IT systems

41
Q

Vulnerabilities in SS7

A

allows phone networks to exchange information required for passing calls and texts they can empty customers’ banks by intercepting the messages banks send to customers.

42
Q

Malware

A

damaging computer systems without the owners knowledge and steal data

43
Q

Ransomware

A

malicious software designed to deny access to files or threaten to publish victims data unless a ransom is paid.

44
Q

ATM attacks

A

sofware that ca scan peoples cards and security cameras that can see peoples pin numbers

45
Q

Mobile banking attacks

A

they can be vulnerable to sophisticated cyber-attacks if they lack the security features necessary.

46
Q

Distributed Denial of Service (DDoS)

A

a cyber-attack where the hacker seeks to disrupt an originations network services.

47
Q

Insider threats

A

attacks can come from within an organisations own network.

48
Q

Phishing as a service

A

a type of fraud where a cybercriminal pretends to be a reputable organisation or person. They can use phishing emails to distribute malicious links or attachments designed to obtain their login details or account information

49
Q

Spear-phishing

A

a more targeted attempt at individuals to steal account information from a specific victim.