Hi David,
Is key risk indicator required? Can it predict op risk? the following 2 questions look contradicting with each other, although they are on the same year exam!
thanks.
53. You have been asked to help communicate to business unit managers some practical
considerations in developing key risk indicators (KRIs) and collecting data. Which of the
following should not be on your list of talking points?
a. KRI definitions will consider the rationale for the risk indicator, description of the
measurement criteria, and the sources of data.
b. KRIs must be continually validated and refined.
c. Select KRIs based on their data availability first and predictive value second.
d. Each KRI should be weighted in accordance with its significance, or predictive
capabilities
CORRECT: C
You would always select KRIs based on their predictive value first and data availability
second.
98. Which of the following arguments is false?
Key Risk Indicators should:
a. Be based upon historical loss data
b. Be an objective measure of operational risk
c. Anticipate operational risks
d. Be monitored over time to detect trends
CORRECT: C
Is key risk indicator required? Can it predict op risk? the following 2 questions look contradicting with each other, although they are on the same year exam!
thanks.
53. You have been asked to help communicate to business unit managers some practical
considerations in developing key risk indicators (KRIs) and collecting data. Which of the
following should not be on your list of talking points?
a. KRI definitions will consider the rationale for the risk indicator, description of the
measurement criteria, and the sources of data.
b. KRIs must be continually validated and refined.
c. Select KRIs based on their data availability first and predictive value second.
d. Each KRI should be weighted in accordance with its significance, or predictive
capabilities
CORRECT: C
You would always select KRIs based on their predictive value first and data availability
second.
98. Which of the following arguments is false?
Key Risk Indicators should:
a. Be based upon historical loss data
b. Be an objective measure of operational risk
c. Anticipate operational risks
d. Be monitored over time to detect trends
CORRECT: C
