Which of the following losses can be considered as operational risk losses? a) A counterparty going bankrupt and not paying b) Damage to the company’s reputation from a cyber attack c) Inability to process customer transactions due to a cyber attack d) The failure of a central counter party to correctly execute a trade e) An employee suing the company for discrimination f) A new business venture in another company failing to be profitable g) Violating financial regulations in another country II. Answer the following questions: a) What are credit ratings? b) Define Enterprise Risk Management c) Why is it important that risk models are back tested? What does it mean if a model fails a back test?
Which of the following losses can be considered as operational risk losses? a) A counterparty going bankrupt and not paying b) Damage to the company’s reputation from a cyber attack c) Inability to process customer transactions due to a cyber attack d) The failure of a central counter party to correctly execute a trade e) An employee suing the company for discrimination f) A new business venture in another company failing to be profitable g) Violating financial regulations in another country II. Answer the following questions: a) What are credit ratings? b) Define Enterprise Risk Management c) Why is it important that risk models are back tested? What does it mean if a model fails a back test?
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
Section: Chapter Questions
Problem 8CYBK
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Question
Which of the following losses can be considered as operational risk losses?
a) A counterparty going bankrupt and not paying
b) Damage to the company’s reputation from a cyber attack
c) Inability to process customer transactions due to a cyber attack
d) The failure of a central counter party to correctly execute a trade
e) An employee suing the company for discrimination
f) A new business venture in another company failing to be profitable
g) Violating financial regulations in another country
II. Answer the following questions:
a) What are credit ratings?
b) Define Enterprise Risk Management
c) Why is it important that risk models are back tested? What does it mean if a model
fails a back test?
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