Online Access Free 8020 Practice Test

Confidence Accounting can be defined as:

• A.An approach that encourages companies and audit firms to have diverse boards.
• B.An approach that encourages companies and audit firms to stop using figures and maths.
• C.An approach that encourages companies and audit firms to use ranges, rather than discrete numbers, for major accounting entries.
• D.An approach that encourages companies and audit firms to use regular statements in their Al software.

In operational resilience, what is impact tolerance?

• A.Impact tolerance is a firm's tolerance for disruption to a particular business service.
• B.Impact tolerance is a firm's risk appetite statement.
• C.Impact tolerance is a firm's risk capacity statement.
• D.Impact tolerance is a firm's tolerance for disruption to a particular business process.

In operational resilience, what is impact tolerance?

• A.Impact tolerance is a firm's tolerance for disruption to a particular business service.
• B.Impact tolerance is a firm's risk appetite statement.
• C.Impact tolerance is a firm's risk capacity statement.
• D.Impact tolerance is a firm's tolerance for disruption to a particular business process.

The Internal Loss Multiplier (ILM) is part of the Basel III Standardized Approach. Which of these definitions best descibes it?

• A.It is a non-financial factor that is based on a bank's average historical losses.
• B.It is uniform, and is used for indicating consistent incidents on an average return basis.
• C.t is a scaling factor that is based on a bank's average historical losses.
• D.It is a financial-statement-based proxy for operational risk.

Risk Sensitive pricing is required for several good reasons. Which one of the following is not relevant to the Management's evaluation of the correct approach to Risk Sensitive pricing?

• A.To link personal targets to risk-adjusted return requirements would reinforce the desired risk aware, culture.
• B.To ensure the income targets can be met or exceeded.
• C.To adequately reward the investors for the capital they gave us to put at risk.
• D.To avoid the build-up of a skewed quality property portfolio.