Risk MCQ Assessment

pdf

School

The University of Adelaide *

*We aren’t endorsed by this school

Course

4070BWT

Subject

Management

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by ProfTeamFinch29

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 1/7 Learning Centre Logout THANK YOU FOR COMPLETING THE MULTI-CHOICE TEST! S.NO. Question Answer Given 1 Understanding the level of risk your business faces is a vital component of being a Finance and Mortgage Broker. Choose the two processes you need to follow to understand the level of risk your business faces. A Risk Analysis Matrix identifies the likelihood of the risk occurring and is shown in a table which supports the process of planning controls. Student Number : 61627 Student Name : Daniel Wu Course : FNS50322 Diploma of Finance and Mortgage Broking Management Assessment : Risk Knowledge MCQ Total Questions : 23 Marks Obtained : 23 Result: Satisfactory Attempts:2/5 Back to Content And Assessments Dashboard Back to Learning Centre - Online Course Content

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 2/7 The Risk Ranking process identifies the likelihood of the risk occurring by being rated according to the consequences. 2 There are several types of risk in the financial services industry. Below are some statements that explain the meaning of these types of risks. Choose the two correct comparisons. Speculative risk is more complex than pure risk because you can’t be sure if the end result will be a positive or a negative one and generally insurance won’t cover a negative outcome. Both personal risk and property risk can be mitigated by insurance policies, and it is important for a financial service provider to ask questions relating to these when they are providing a product that may have these risks. 3 Conducting spot audit checks enables you to review and determine the quality of the risk management process you have in place. Which two of the following options would ensure high quality risk management: After the initial implementation, modify the plan whenever there is an identified need Learn from yours or other people in your network’s experiences; loss which results in changes in the plan contributes to being able to make better informed decisions when dealing with risks in the future. 4 Which of the following is a type of speculative risk? Risks associated with property development finance—a variety of risks that will affect completing a project due to timing or technical issues. 5 In relation to risk management, which two statements are correct? The purpose of risk identification is to find, recognise, and describe risks that might help or hinder an organisation

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 3/7 from achieving its objectives. Specific, relevant, and up-to- date information is important in identifying risks. Monitoring and reviewing risk management strategies entails ongoing consideration of the effectiveness and efficiency of risk management plans. Some risk management plans may prove ineffective or cumbersome. Likewise, it involves consideration of the way changes in the external environment (i.e., changes in the economic environment) alter the nature of risk. As an example, an interest rise increase may raise the risk of a downturn in the property market. 6 The PDCA cycle mentions the effectiveness of treating and measuring a risk. Select the two statements that are correct when measuring risk. For brokers compliance with legislation and regulations should be the benchmark to determine the acceptable risk levels. An important component of being a finance broker is to assess and manage risks, whether you work as an employee or in your own business. 7 When gathering evidence to support a loan application, which two forms of evidence are essential for clients that maybe considered high risk? Collateral available to secure the loan (form doc to prove asset ownership). Applicant's last two years' personal tax returns and ATO Tax Notice of Assessment. 8 When working with higher risk clients, familiarising yourself with specialist lenders and their requirements allows you to do which Access a large network of lenders who work with non- conforming borrowers

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 4/7 two of the following? Seek genuine non-bank alternatives for borrowers that don’t conform to regulated loans 9 There are five types of residual risks. They are business, financial, operational, strategic, and legal/regulatory risk. Select the three statements that fit the residual risk profile. Finance Brokers are often in a position of balancing the interest of sometimes competing groups. This entails legal and professional risks that require great skill to manage. There is an abundance of legislation governing finance industry activities. These stipulate both civil and criminal penalties. Finance Brokers are often reliant on information provided by other parties. The risk of error and misrepresentation can be significant. This risk needs to be managed carefully and strategically. 10 A result of minimising residual risks after The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry was the introduction of which three of the following? Regulatory Guide 273 Best Interests Duty (RG 273 BID) for brokers to support their risk management strategies plus new powers for ASIC to investigate and conduct searches and ban individuals from the industry plus higher financial penalties and longer prison sentences for criminal behaviour. The Banking Executive Accountability Regime (BEAR), to drive clarity and transparency of individual accountability at authorised deposit taking institutions (ADI’s) and transform risk outcomes in the finance industry.

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 5/7 Regulatory Guide 78 Breach Reporting (RG 78) to ensure licensees report significant breaches to ASIC as early as possible, even where information is still being gathered on the breach. Failure to report a significant breach is an offence and may result in penalties. 11 When defining root cause analysis, which three sentences are correct? Root cause analysis is part of the “monitor and review” component of the risk management process as the risk register, risks, controls and treatment plans are up to date and current which then allows for the review of achievements and failures which can be used to further treat the related risks. Root cause analysis is a useful tool in managing risk, it applies learning from previous recorded incidents. Root cause analysis follows a recognised system that identifies direct and root causes. It is transparent, collaborative and involves relevant stakeholders with actions that treat the causes and lead to business improvements. 12 Select the one correct strategy Fishbone analysis uses to find the best remediation plan for a risk. Places, Policies, People, and Processes 13 Select the three organisational policies and procedures utilised in the financial services industry that can protect the business, the client and/or the finance broker. Work, Health and Safety, Incident and Hazard Reporting, Code of Conduct Serviceability standards and Criteria, Risk Appetite Levels and Tolerance, Regulatory Reporting and Fraud Prevention

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 6/7 Anti-money laundering and Counter terrorism, Identification requirements, Email, internet and Cyber Security 14 What is the purpose of risk clusters? To find distinct groups within a set of data or information and put them together. 15 There are 8 Risk Management Principles listed in Section 1 of the Learning Guide. Select the one correct definition for Structured and Comprehensive. A structured and comprehensive approach to risk management contributes to consistent and comparable results. 16 There are 8 Risk Management Principles listed in Section 1 of the Learning Guide. Select the one correct definition for Dynamic. Risks can emerge, change, or disappear as an organisation’s external and internal context changes. Risk management anticipates, detects, acknowledges, and responds to those changes of events appropriately and timely. 17 There are 8 Risk Management Principles listed in Section 1 of the Learning Guide. Select the one correct definition for Continual Improvement. Risk management is continually improved through learning and experience. 18 There are 8 Risk Management Principles listed in Section 1 of the Learning Guide. Select the one correct definition for Human and cultural factors. Human behaviour and culture significantly influence all aspects of risk management at each level and stage 19 Select the one correct definition for Low Risk. It is rare that the event may occur

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

27/09/2023, 12:42 Online Assessment https://www.aamctraining.edu.au/InternationalCourse/ExaminationManagement/ResultManagement.aspx 7/7 20 Select the one correct definition for Likelihood. The chance of an adverse event occuring 21 Select the one correct definition for Consequence. The result of an adverse event occurring 22 Select the one correct definition for Moderate Risk. It is possible the event may occur 23 Select the two statements that show which risk management strategy would be more ideal within a mortgage broking practice. A risk register analyses the potential risks and plans how to manage and avoid the risks before they become a problem or occur. A risk register is proactive.

Risk MCQ Assessment

Related Documents