IRM International Certificate in Operational Risk Management Practice Questions - Institute of Risk Management International Certificate in Operational Risk Management Exam - IRM International Certificate in Operational Risk Management Practice Questions - Institute of Risk Management International Certificate in Operational Risk Management Exam

Question 1

According to the Basel II/III framework, how is operational risk defined?

The risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events The risk of financial loss resulting from changes in market prices, interest rates, or foreign exchange rates The risk of loss arising from a borrower or counterparty failing to meet their contractual obligations The risk of loss caused by adverse strategic decisions or changes in the competitive business environment

Correct Answer:

The risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events

Question 2

Which of the following risk types is explicitly INCLUDED within the Basel definition of operational risk?

Legal risk Reputational risk Strategic risk Systemic financial market risk

Correct Answer:

Legal risk

Question 3

Under the IIA Three Lines Model (formerly Three Lines of Defence), what primary role is performed by the First Line?

Owning, managing, and directly executing day-to-day risk management activities within business operations Providing independent and objective assurance on risk governance and control effectiveness Establishing risk management policy standards and challenging operational risk assessments Approving the overall enterprise risk appetite statement and setting business strategy

Correct Answer:

Owning, managing, and directly executing day-to-day risk management activities within business operations

Question 4

Which body or role forms the Second Line in the Institute of Internal Auditors (IIA) Three Lines Model?

Risk Management and Compliance functions offering expertise, oversight, and challenge Operational business unit managers and front-line staff External regulators and independent statutory auditors The Board Audit Committee and Chief Executive Officer

Correct Answer:

Risk Management and Compliance functions offering expertise, oversight, and challenge

Question 5

What is the primary function of the Third Line in an organization's risk governance framework?

To provide independent and objective assurance to the board regarding control effectiveness To design and execute daily operational controls for transactions To set quantitative trading limits for market risk exposures To negotiate insurance contracts to transfer operational risk

Correct Answer:

To provide independent and objective assurance to the board regarding control effectiveness

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About this Exam

Prepare with the IRM International Certificate in Operational Risk Management Practice Questions - Institute of Risk Management International Certificate in Operational Risk Management Exam practice quiz. This question bank includes 100 questions covering risk, operational, loss, management, and framework. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IRM International Certificate in Operational Risk Management Practice Questions - Institute of Risk Management International Certificate in Operational Risk Management Exam

This practice set contains 100 questions from the matching question bank and focuses on risk, operational, loss, management, and framework. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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IRM International Certificate in Operational Risk Management Practice Questions - Institute of Risk Management International Certificate in Operational Risk Management Exam

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