Which one of the following market risk measures evaluates the bank's earnings sensitivity?

• A.Value-at-risk back testing
• B.Earnings-at-risk stress testing
• C.Large exposure risk identification
• D.Cash flow stress testing

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Which statements correctly describe the features of using subscription databases for operational loss data
analysis?
Subscription databases
I. Provide central data repositories and benchmarking services to their members.
II. Can provide insight into whether the losses in a firm reflect the usual losses in their industry.
III. Assist with mapping the events to the appropriate business lines, risk categories and causes.
IV. Reflect only events that are interesting to the press and are reported in the press.

• A.II, III, and IV
• B.II and III
• C.I, II and III
• D.I and II

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Which of the following bank events could stress the bank's liquidity position?
I. Obligations to fund assets like mortgages
II. Unusually large depositor withdrawals
III. Counterparty collateral calls
IV. Nonperforming assets

• A.I, II
• B.I, II, III and IV
• C.IV
• D.III, IV

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As an example of the balance sheet effect, if rates rise, Delta Bank can expect:

• A.Its fixed rate assets to drop in value, while that effect will be amplified by a reduction in the value of its
  fixed rate liabilities.
• B.Its fixed rate assets to increase in value, although that effect will be offset by a reduction in the value of
  its fixed rate liabilities.
• C.Its fixed rate assets to drop in value, although that effect will be offset by a reduction in the value of its
  fixed rate liabilities.
• D.Its fixed rate assets to increase in value, while that effect will be amplified by a reduction in the value of
  its fixed rate liabilities.

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Nijenhaus Bruch is currently creating a program of operational loss data collection at a bank with a large
branch network. Which minimal data standards should this collection approach include to meet minimum loss
data collecting standards?

• A.Reports should be designed to be shared with external data loss consortia recipients.
• B.Reports should only include the actual loss date.
• C.Reports should capture the date of the event, the amount of loss, and recoveries of gross loss amounts.
• D.Reports should capture both the date of the event and the amount of loss.

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