Chapter 2 - CISI IT

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1. What is the principle behind the Standardized Approach?

  • Allows banks to use their own internal measurement system and loss data to calculate capital charge.
  • allocated different risk profiles across different lines of business via risk-weighted assets
  • It is the most basic approach requiring the bank to hold a fixed percentage of gross income as operational risk capital
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Other questions in this quiz

2. Under MiFID II "post-trade transparency" reporting, where does TRANSACTION REPORTING need to be performed?

  • ARM (approved reporting mechanism)
  • APA (approved publication arrangement)

3. What is the maximum penalty for not complying with GDPR rules?

  • $25 million fine or 5% of group worldwide turnover (whichever is greater)
  • $20 million fine or 4% of group worldwide turnover (whichever is greater)
  • $40 million fine or 4% of group worldwide turnover (whichever is greater)
  • $20 million fine or 2% of group worldwide turnover (whichever is greater)

4. Which authority focuses on regulation of market abuse and insider dealing, and has a statutory objective of ensuring markets function well?

  • FSMA
  • FCA (Financial Conduct Authority)
  • PRA (Prudential Regulation Authority)
  • FPC (Financial Policy Committee)

5. Under MiFID II. MTFs & SIs must make aggregated order information available of what?

  • 5 best available prices
  • 5 best available settlement agents
  • best available prices

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