(Solved): 1. Which of the following statement is CORRECT about risk owners and control owners? A. Risk owner ...

1. Which of the following statement is CORRECT about risk owners and control owners? A. Risk owner and control owner must be the same individual B. Control owner must be a more senior person than the risk owner c Risk owner does not have to be the same person as control owner D. Risk owner usually owns only one risk The correct answer is 2. Key risk indicators (KRIs) show A. Movement in likelihood and/or impact of a risk B. Movement in design effectiveness and/or operational effectiveness of controls c Movement in preventive and corrective controls D Movement in detective and directive controls The correct answer is 3. RCA (risk and control assessment) is related to: A control objectives of the firm. business objectives of the firm. c ROI (return on investment) objectives of the firm. D. risk appetite objectives of the firm. The correct answer is 4. A cause leads to an event which leads to an effect. An operational risk manager incorrectly identifies cause of an event as the event itself. What are the consequences of this misjudgment? A. Incorrect residual risk measurement. No consequence since it is the effect which is important. c Incorrect identification of corrective control failures. D. Incorrect identification of preventive control failures. The correct answer is 5. Insurance companies while processing operational loss coverage claims primarily focus on A the cause that led to the event which led to the loss the event itself that led to the loss c effect of the event irrespective of the cause D all three - the cause, the event, and the effect The correct answer is