Skip to content
  • Cart
  • My Account
  • Log In
  • Sign up Free!
  • Forum
  • Shop FRM®
  • FAQs
  • My Courses
  • My Account
  • Login
  • Log Out

Practice Question Set: Chapter 2. Risk Governance

  1. FRM® Part 2 Basic
  2. Chapter 2. Risk Governance
  3. Practice Question Set: Chapter 2. Risk Governance

Chapter 2. Risk Governance Practice Question Set covers the following learning objectives:

Describe the “three lines of defense” model for operational risk governance and compare roles and responsibilities for each line of defense.

Shop Courses
Previous Topic
Back to Lesson
Next Lesson
Upgrade Your Account <br />to Access More Content Upgrade Your Account
to Access More Content

Course Navigation

Course Home
Interactive Practice Question Platform
Tutorial – How to Use the Interactive Practice Question Platform
Market Risk Measurement & Management
Dowd, Measuring Market Risk, Chapters 3, 4 & 7
Study Notes: Dowd, Chapters 3, 4 & 7
Practice Question Set: Dowd, Chapters 3, 4 & 7
Jorion, Value-at-Risk, Chapters 6 & 11
Study Notes: Jorion, Chapters 6 & 11
Practice Question Set: Jorion Chapters 6 & 11
David Lynch, et. al. Validation of Risk Management Models for Financial Institutions: Chapters 2 & 4
Study Notes: Lynch, et. al. Chapters 2 & 4
Practice Question Set: Lynch, et. al. Chapters 2 & 4
Instructional Video: Lynch, Chapter 2: Validating Bank Holding Companies’ VaR Models for Market Risk
Meissner, Correlation Risk Modeling and Management, Chapters 1, 2 & 5
Study Notes: Meissner, Chapters 1, 2 & 5
Practice Question Set: Meissner, Chapters 1, 2 & 5
Tuckman, Fixed Income Securities, 6, 7, 8 & 9 (4th Ed.) Ch. 9 & 10 (3rd Ed.)
Study Notes: Tuckman, Ch. 6, 7, 8 & 9 (4th Ed.) Ch. 9 & 10 (3rd Ed.)
Practice Question Set: Tuckman, Ch. 6, 7, 8 & 9 (4th Ed.) Ch. 9 & 10 (3rd Ed.)
Hull, Options, Futures, and Other Derivatives, Chapter 20: Volatility Smiles
Study Notes: Hull, Chapter 20: Volatility Smiles
Practice Question Set: Hull, Chapter 20: Volatility Smiles
Hull, Risk Management, Chapter 18: Fundamental Review of the Trading Book
Study Notes: Hull RMFI, Chapter 18: Fundamental Review of the Trading Book
Practice Question Set: Hull RMFI, Chapter 18: Fundamental Review of the Trading Book
Market Risk Measurement & Management Review
Learning Spreadsheets: P2.T5.b XLS Bundle
Learning Spreadsheets: P2.T5.c XLS Bundle
Learning Spreadsheets: P2.T5.d XLS Bundle
Credit Risk Measurement & Management
Bouteille et. al, Handbook of Credit Risk Management, Chapters 1 & 2
Study Notes: Bouteille et. al, Chapters 1 & 2
Practice Questions: Bouteille et. al, Chapters 1 & 2
van Greuning et. al, Analyzing Banking Risk, Chapter 7
Study Notes: van Greuning et. al, Chapter 7
Practice Questions: van Greuning et. al, Chapter 7
Schroeck, Chapter 5. Capital Structure in Banks
Study Notes: Schroeck, Chapter 5: Capital Structure in Banks
Practice Question Set: Schroeck, Chapter 5: Capital Structure in Banks
Doumpos et al., Analytical Techniques in the Assessment of Credit Risk, Chapters 1 & 2
Study Notes: Doumpos et al., Analytical Techniques in the Assessment of Credit Risk, Chapters 1 & 2
Practice Question Set: Doumpos et al., Analytical Techniques in the Assessment of Credit Risk, Chapters 1 & 2
Crouhy, Essentials of Risk Management, Chapter 9
Study Notes: Crouhy, Chapter 9
Practice Question Set: Crouhy, Chapter 9
Damodaran, Country Risk: Determinants, Measures, and Implications
Study Notes: Damodaran, Country Risk: Determinants, Measures, and Implications
Practice Questions: Damodaran, Country Risk: Determinants, Measures, and Implications
Hull, Risk Management and Financial Institutions, Chapters 17 & 19
Study Notes: Hull, Risk Management and Financial Institutions, Chapters 17 & 19
Practice Questions: Hull, Risk Management and Financial Institutions, Chapters 17 & 19
Malz, Financial Risk Management, Chapters 8 & 9
Study Notes: Malz, Chapters 8 & 9
Practice Question Set: Malz, Chapters 8 & 9
Hull, Options, Futures, and Other Derivatives, Chapters 24 & 25
Study Notes: Hull, Options, Futures, and Other Derivatives, Chapters 24 & 25
Practice Questions: Hull, Options, Futures, and Other Derivatives, Chapters 24 & 25
Gregory, The xVA Challenge, Chapters 2, 3, 6, 7, 8, 11 & 17
Study Notes: Gregory, Chapters Chapters 2, 3, 6, 7, 8, 11 & 17
Practice Question Set: Gregory, Chapters Chapters 2, 3, 6, 7, 8, 11 & 17
Siddique & Hasan, Stress Testing, Chapter 4
Study Notes: Siddique & Hasan, Chapter 4: The Evolution of Stress Testing Counterparty Exposures
Practice Question Set: Siddique & Hasan, Chapter 4: The Evolution of Stress Testing Counterparty Exposures
Choudhry, Structured Credit Products, Chapter 12
Study Notes: Choudhry, Chapter 12: An Introduction to Securitisation
Practice Question Set: Choudhry, Chapter 12: An Introduction to Securitisation
Credit Risk Measurement & Management Review
Learning Spreadsheets: P2.T6.a XLS Bundle
Learning Spreadsheets: P2.T6.b XLS Bundle
Learning Spreadsheets: P2.T6.c XLS Bundle
Learning Spreadsheets: P2.T6.d XLS Bundle
Operational & Integrated Risk Management
Chapter 1. Introduction to Operational Risk and Resilience
Study Notes: Chapter 1. Introduction to Operational Risk and Resilience
Practice Question Set: Chapter 1. Introduction to Operational Risk and Resilience
Chapter 2. Risk Governance
Study Notes: Chapter 2. Risk Governance
Practice Question Set: Chapter 2. Risk Governance
Chapter 3. Risk Identification
Study Notes: Chapter 3. Risk Identification
Practice Question Set: Chapter 3. Risk Identification
Chapter 4. Risk Measurement and Assessment
Study Notes: Chapter 4. Risk Measurement and Assessment
Practice Question Set: Chapter 4. Risk Measurement and Assessment
Chapter 5. Risk Mitigation
Study Notes: Chapter 5. Risk Mitigation
Practice Question Set: Chapter 5. Risk Mitigation
Chapter 6. Risk Reporting
Study Notes: Chapter 6. Risk Reporting
Practice Question Set: Chapter 6. Risk Reporting
Chapter 7. Integrated Risk Management
Study Notes: Chapter 7: Integrated Risk Management
Practice Question Set: Chapter 7: Integrated Risk Management
Cyber-resilience: Range of practices
Study Notes: Cyber-resilience: Range of practices
Practice Question Set: Cyber-resilience: Range of practices
Chapter 9. Case Study: Cyberthreats and Information Security Risks
Study Notes: Chapter 9. Case Study: Cyberthreats and Information Security Risks
Practice Question Set: Chapter 9. Case Study: Cyberthreats and Information Security Risks
Sound Management of Risks: Money Laundering and Financing of Terrorism
Study Notes: Sound Management of Risks: Money Laundering and Financing of Terrorism
Practice Question Set: Sound Management of Risks: Money Laundering and Financing of Terrorism
Chapter 11. Case Study: Financial Crime and Fraud
Study Notes: Chapter 11. Case Study: Financial Crime and Fraud
Practice Question Set: Chapter 11. Case Study: Financial Crime and Fraud
Guidance on Managing Outsourcing Risk
Study Notes: Guidance on Managing Outsourcing Risk
Practice Question Set: Guidance on Managing Outsourcing Risk
Chapter 13. Case Study: Third-party Risk Management
Study Notes: Chapter 13. Case Study: Third-party Risk Management
Chapter 14. Case Study: Investor Protection and Compliance Risks in Investment Activities
Study Notes: Chapter 14. Case Study: Investor Protection and Compliance Risks in Investment Activities
Supervisory Guidance on Model Risk Management
Study Notes: Supervisory Guidance on Model Risk Management
Practice Question Set: Supervisory Guidance on Model Risk Management
Chapter 16. Case Study: Model Risk and Model Validation
Study Notes: Chapter 16. Case Study: Model Risk and Model Validation
Schuermann, Stress Testing Banks
Study Notes: Schuermann, Stress Testing Banks
Practice Question Set: Schuermann, Stress Testing Banks
Crouhy, Essentials of Risk Management, Chapter 17
Study Notes: Crouhy, Chapter 17: Risk Capital Attribution and Risk-Adjusted Performance Measurement
Practice Question Set: Crouhy, Chapter 17: Risk Capital Attribution and Risk-Adjusted Performance Measurement
Range of Practices and Issues in Economic Capital Frameworks
Study Notes: Range of Practices
Practice Question Set: Range of Practices
Capital Planning at Large Bank Holding Companies
Study Notes: Capital Planning at Large Bank Holding Companies
Practice Question Set: Capital Planning at Large Bank Holding Companies
Carey, Capital Regulation Before the Global Financial Crisis
Study Notes: Carey, Capital Regulation Before the Global Financial Crisis
Practice Question Set: Carey, Capital Regulation Before the Global Financial Crisis
Carey, Solvency, Liquidity and Other Regulation After the Global Financial Crisis
Study Notes: Carey, Solvency, Liquidity and Other Regulation
Practice Question Set: Carey, Solvency, Liquidity and Other Regulation
High-level summary of Basel III reforms
Study Notes: High-level summary of Basel III reforms
Practice Question Set: High-level summary of Basel III reforms
Basel III: Finalising post-crisis reforms
Study Notes: Basel III: Finalising post-crisis reforms
Practice Question Set: Basel III: Finalising post-crisis reforms
Operational & Integrated Risk Management Review
Learning Spreadsheets: P2.T7.a XLS Bundle
Learning Spreadsheets: P2.T7.b XLS Bundle
Learning Spreadsheets: P2.T7.c XLS Bundle
Liquidity and Treasury Risk Measurement and Management
Hull, Risk Management and Financial Institutions, Chapter 24
Study Notes: Hull, RMFI, Chapter 24: Liquidity Risk
Practice Question Set: Hull, RMFI, Chapter 24: Liquidity Risk
Malz, Financial Risk Management: Models, History, and Institutions, Chapter 12
Study Notes: Malz, Chapter 12: Liquidity and Leverage
Practice Question Set: Malz, Chapter 12: Liquidity and Leverage
Venkat, Liquidity Risk Management, Chapter 6: Early Warning Indicators
Study Notes: Venkat, Chapter 6: Early Warning Indicators
Practice Question Set: Venkat, Chapter 6: Early Warning Indicators
Rose, Bank Management & Financial Services, Chapters 10 & 11
Study Notes: Rose, Bank Management & Financial Services, Chapter 10 & 11
Practice Question Set: Rose, Bank Management & Financial Services, Chapters 10 & 11
Venkat, Liquidity Risk Management, Chapter 4
Study Notes: Venkat, Chapter 4: Intraday Liquidity Risk Management
Practice Question Set: Venkat, Chapter 4: Intraday Liquidity Risk Management
Castagna, Measuring and Managing Liquidity Risk, Chapter 6
Study Notes: Castagna, Chapter 6: Monitoring Liquidity
Practice Question Set: Castagna, Chapter 6: Monitoring Liquidity
Duffie, Failure Mechanics of Dealer Banks
Study Notes: Duffie, Failure Mechanics of Dealer Banks
Practice Question Set: Duffie, Failure Mechanics of Dealer Banks
Venkat, Liquidity Risk Management, Chapter 3
Study Notes: Venkat, Chapter 3: Liquidity Stress Testing
Practice Question Set: Venkat, Chapter 3: Liquidity Stress Testing
Choudhry, The Principles of Banking Institutions, Chapter 14
Study Notes: Choudhry, The Principles of Banking Institutions, Chapter 14 – Coming Soon
Practice Question Set: Choudhry, Chapter 14: Liquidity Risk Reporting and Stress Testing
Venkat, Liquidity Risk Management, Chapter 7
Study Notes: Venkat, Chapter 7: Contingency Funding Planning
Practice Question Set: Venkat, Chapter 7: Contingency Funding Planning
Rose, Bank Management & Financial Services, Chapter 13
Study Notes: Rose, Bank Management & Financial Services, Chapter 13
Practice Question Set: Rose, Bank Management & Financial Services, Chapter 13
Tuckman, Fixed Income Securities, Chapter 12
Study Notes: Tuckman, Chapter 12: Repurchase Agreements and Financing
Practice Question Set: Tuckman, Chapter 12: Repurchase Agreements and Financing
Grant, Liquidity Transfer Pricing: A Guide to Better Practice
Study Notes: Grant, Liquidity Transfer Pricing: A Guide to Better Practice
Practice Question Set: Grant, Liquidity Transfer Pricing: A Guide to Better Practice
McGuire, The US Dollar Shortage in Global Banking and the International Policy Response
Study Notes: McGuire, US Dollar Shortage in Global Banking
Practice Question Set: McGuire, US Dollar Shortage in Global Banking
Borio, Covered Interest Rate Parity Lost: Understanding the Cross-Currency Basis
Study Notes: Borio, Covered Interest Rate Parity Lost
Practice Question Set: Borio, Covered Interest Rate Parity Lost
Rose, Bank Management & Financial Services, Chapter 7
Study Notes: Rose, Chapter 7: Risk management for Changing Interest Rates
Practice Question Set: Rose, Chapter 7: Risk management for Changing Interest Rates
Ang, Asset Management, Chapter 13
Study Notes: Ang, Chapter 13: Illiquid Assets
Practice Question Set: Ang, Chapter 13: Illiquid Assets
Risk Management & Investment Management
Ang, Asset Management, Chapter 6, 7 & 10
Study Notes: Ang, Chapters 6, 7 & 10
Practice Question Set: Ang, Chapters 6, 7 & 10
Grinold, Active Portfolio Management, Chapter 14
Study Notes: Grinold, Chapter 14: Portfolio Construction
Practice Question Set: Grinold, Chapter 14: Portfolio Construction
Jorion, Value-at-Risk, Chapters 7 & 17
Study Notes: Jorion, Chapters 7 & 17
Practice Question Set: Jorion, Chapters 7 & 17
Litterman, Modern Investment Management, Chapter 17
Study Notes: Litterman, Chapter 17: Risk Monitoring and Performance Measurement
Practice Question Set: Litterman, Chapter 17: Risk Monitoring and Performance Measurement
Bodie, Investments, Chapter 24
Study Notes: Bodie, Chapter 24: Portfolio Performance Evaluation
Practice Question Set: Bodie, Chapter 24: Portfolio Performance Evaluation
Constantinides, Handbook of the Economics of Finance, Chapter 17
Study Notes: Constantinides, Chapter 17: Hedge Funds
Practice Question Set: Constantinides, Chapter 17: Hedge Funds
Mirabile, Hedge Fund Investing, Chapter 12
Study Notes: Mirabile, Chapter 12: Performing Due Diligence on Specific Managers and Funds
Practice Question Set: Mirabile, Chapter 12: Performing Due Diligence on Specific Managers and Funds
Dimmock and Gerken: Finding Bernie Madoff: Detecting Fraud by Investment Managers
Study Notes: Dimmock and Gerken: Finding Bernie Madoff: Detecting Fraud by Investment Managers
Practice Question Set: Dimmock and Gerken: Finding Bernie Madoff: Detecting Fraud by Investment Managers
Current Issues In Financial Markets
“2023 Bank Failures, Preliminary lessons learnt for resolution”, FSB, October 2023
Study Notes: 2023 Bank Failures, Preliminary lessons learnt for resolution
”Generative Artificial Intelligence in Finance: Risk Considerations”, IMF, August 2023
Study Notes: Generative Artificial Intelligence in Finance: Risk Considerations
BIS Annual Economic Report, Section 3. Artificial intelligence and the economy: implications for central banks, June 2024
Study Notes: Artificial intelligence and the economy: implications for central banks
“Interest Rate Risk Management by EME Banks”, BIS Quarterly Review, September 2023
Study Notes: Interest Rate Risk Management by EME Banks
BIS Annual Economic Report, Section 1. Laying a robust macro-financial foundation for the future, June 2024
Study Notes: Laying a robust macro-financial foundation for the future
”The Last Mile: Financial Vulnerabilities and Risks, Chapter 2: The Rise and Risks of Private Credit”
Study Notes: The Last Mile: Financial Vulnerabilities and Risks, Chapter 2: The Rise and Risks of Private Credit
BIS Annual Economic Report, Section 2: Monetary and fiscal policy: safeguarding stability and trust, June 2023
Study Notes: Monetary and fiscal policy: safeguarding stability and trust
”Regulating the Crypto Ecosystem: The Case of Unbacked Crypto Assets”, IMF Fintech Notes, September 2022
Study Notes: Regulating the Crypto Ecosystem: The Case of Unbacked Crypto Assets
Martinez et. al., “Digital Resilience and Financial Stability. The Quest for Policy Tools in The Financial Sector”
Study Notes: Digital Resilience and Financial Stability
PART II REVIEW
Formula Sheets
Part 2 Formula Sheet
Supplemental Mock Exams 1 & 2
Part 2 Interactive PQ Platform – Build a Mock Exam
Part 2 Full Length Interactive Mock Exam 1
Return to FRM® Part 2 Basic
  • FRM Study Guide
  • My Courses

Stay connected

We'll keep you informed on new forum posts, relevant blog articles, and everything you'll need to prepare for your exam.
  • Privacy Policy
  • Terms of Use
  • Affiliate Disclosure

© Copyright 2026 – Bionic Turtle