Operations Risk Management Module (Intermediate) Practice Exam

Operations Risk Management Module (Intermediate) Practice Exam

Each business navigates within both internal and external realms, each fraught with inherent risks that can impact operations. Operational risk management serves as a strategic approach, facilitating the assessment of risks, decision-making concerning risks, and the deployment of controls to either accept, mitigate, or avoid these risks, thus playing a crucial role in business operations.

Who should take the exam?

The Operations Risk Management Module (Intermediate) exam is designed for those having:

• In-depth knowledge of operations risk management.
• Skills to identify operations risk issues.
• Ability to understand approaches to mitigate operations risk issues.

Some other specific audiences include:

• Students pursuing careers in finance, risk management, or a related field. Finance professionals
• Employees in the financial services sector
• Anyone with an interest in the subject

Exam Details

• Exam Name: Operations Risk Management Module (Intermediate)
• Exam Languages: English
• Duration: 120 minutes
• Exam Questions: 75 Questions
• Passing Score: 60%

Exam Course Outline 

The Operations Risk Management Module (Intermediate) Exam covers the given topics  - 

Topic 1: Overview of Operations Risk

• Risk & Uncertainty
• The Financial Sector
• Risk Types
• Operations Risk
• Operations Risk Management
  • Recruitment & Training
  • Work Flow Design
  • Work Flow Documentation
  • Delegation of Authority
  • Independent Internal Audit
  • Independent Compliance Function
  • Independent Risk Management Function
  • Systems Audit
  • Corporate Governance
  • Whistle Blower Policy
  • Risk Management Culture

Topic 2: Understand Trades in the Secondary Market

• Trade Intermediaries
  • Stock Broker
  • Trading Member (TM)
  • Clearing Member (CM)
  • Authorised Persons
  • Sub-brokers
• Screen-Based Trading System
• NEAT System
  • Corporate Manager
  • Branch Manager
  • Dealer
• Order Management
  • Entering Orders  
  • Modifying Orders
  • Cancelling Orders
  • Order Matching
• Trade Management
• Risk Management in Trades

Topic 3: Learn about Clearing & Settlement of Trades

• Transaction Cycle
• Clearing
• Settlement
  • Pay-in of Funds and Securities
  • Pay-out of Funds and Securities
• Settlement Risks
  • Counter-Party Risk
  • System Risk
• Risk Management
• Investor Protection

Topic 4: Learn about Workflow Design

• Front Office, Middle Office & Back Office
• Risk Events

Topic 5: Overview of BASEL

• Bank for International Settlements (BIS)
• Basel Accords
  • Basel I
  • Basel II
  • BASEL III
• Detailed Loss Event Type Classification

Topic 6: Understand Basel II: Operational Risk

• The Three Methods
  • Basic Indicater Approach
  • The Standardised Approach
  • Advanced Measurement Approaches
• Mix of Three Methods
• SIGOR (June 2011)
  • Risk Appetite & Risk Tolerance
  • ORMF & ORMS: Verification & Validation
  • Embeddedness
  • Operational Risk Data  
  • Gross Loss & Net Loss
  • Dates
  • Distributions

Topic 7: Learn about Basel: Operational Risk Principles

• Background
• The Principles

Topic 8: Understand Basel: Audit

• External Audit
• Audit Committee
• Internal Audit