GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) Free Sample Paper: Operational Risk, Resilience and Capital Topic Preview

Q: Are these GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) sample questions updated for 2026?

Yes, these free practice questions are continuously reviewed and updated to reflect the latest official syllabus changes and regulatory requirements for candidates in international markets.

Q: How similar is this sample paper to the real GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) exam?

These questions preview the practice style available in the course, but they cover only Operational Risk, Resilience and Capital. This is not a full mock exam and the result cannot measure your overall exam readiness.

Q: What does my GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) topic-preview score mean?

It reflects only your answers to 15 questions from Operational Risk, Resilience and Capital. Other syllabus areas are not tested here, so the score is not a pass or fail result and should not be used to predict your official exam performance.

Q: Can I retake this free topic preview?

Yes. You can retake these 15 questions, but repeated attempts cover the same topic. The full course unlocks all 100 practice questions and broader mock-exam practice.

Question 1

Which statement correctly explains Operational risk?

Accepted Answer

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events; it includes legal risk.

Answer

NFRM is broader language often used for operational, compliance, conduct, cyber and related risks that do not fit neatly inside market or credit risk.

Answer

ERM integrates material risks across the organization so appetite, governance, measurement and response are considered together.

Answer

The Basel event taxonomy separates internal fraud, external fraud, employment practices, clients and products, physical-asset damage, business disruption, and execution or process failures.

Question 2

Which statement correctly explains PSMOR?

Accepted Answer

The Principles for the Sound Management of Operational Risk set expectations for governance, the risk-management environment, disclosure and supervisory review.

Answer

Pillar 1 sets a minimum regulatory capital requirement, while Pillar 2 assesses risks and weaknesses not adequately captured by that minimum.

Answer

The board approves the operational-risk framework and appetite and oversees whether senior management implements them effectively.

Answer

Senior management translates board-approved appetite into policies, responsibilities, resources, controls, monitoring and escalation.

Question 3

Which statement correctly explains Top-down identification?

Accepted Answer

Top-down methods begin with strategy, objectives, business services and enterprise scenarios to identify risks that can threaten outcomes.

Answer

Bottom-up methods examine processes, tasks, systems, events and controls to identify operational failure modes close to the activity.

Answer

Scenario analysis develops severe but plausible events using internal data, external evidence, expert judgment and the firm's control environment.

Answer

A risk taxonomy supplies a common hierarchical language for causes, events, impacts and control themes across the organization.

Question 4

Which statement correctly explains Risk capital?

Accepted Answer

Risk capital supports solvency against unexpected loss at a stated horizon and confidence level and should be distinguished from expected loss.

Answer

The RAROC numerator starts from revenue and subtracts relevant operating cost and expected loss on a consistent basis.

Answer

The denominator is economic or risk capital allocated to the activity, not revenue, exposure or accounting equity by default.

Answer

The hurdle rate is the minimum required risk-adjusted return used to accept, reject or reprice an activity.

Question 5

A risk manager needs to apply Risk aggregation. Which description is appropriate?

Accepted Answer

Risk aggregation combines exposures with explicit dependence assumptions; simple addition ignores diversification while naive correlation may understate stress dependence.

Answer

Economic capital estimates the capital needed for the firm's own risk profile at a chosen horizon and confidence level.

Answer

Risk-adjusted return on capital compares risk-adjusted earnings with economic capital allocated to an activity.

Answer

Enterprise appetite is translated into limits and tolerances for businesses and risk types while preserving escalation for aggregate exposure.

Question 6

A risk manager needs to apply Risk assessment. Which description is appropriate?

Accepted Answer

A firm identifies and assesses inherent ML/TF exposure, control effectiveness and residual risk at enterprise and customer levels.

Answer

Customer identification obtains reliable identity information before or during establishment of the relationship as permitted by applicable rules.

Answer

The beneficial owner is the natural person who ultimately owns or controls the customer or on whose behalf a transaction is conducted.

Answer

A customer profile combines identity, ownership, purpose, expected activity and risk factors to determine due-diligence intensity.

Question 7

A risk manager needs to apply Critical provider. Which description is appropriate?

Accepted Answer

Criticality is driven by impact on important services, customers, compliance and substitutability rather than contract value alone.

Answer

Residual risk reflects provider and firm controls and must be accepted, treated or escalated against appetite.

Answer

An SLA metric is useful only when linked to material performance, thresholds, remedies and escalation.

Answer

Audit rights support assurance but require practical access, scope, evidence and follow-up to be effective.

Question 8

A risk manager needs to apply Non-financial risk management. Which description is appropriate?

Accepted Answer

NFRM is broader language often used for operational, compliance, conduct, cyber and related risks that do not fit neatly inside market or credit risk.

Answer

The Basel event taxonomy separates internal fraud, external fraud, employment practices, clients and products, physical-asset damage, business disruption, and execution or process failures.

Answer

A practical operational-risk cycle identifies and assesses risk, mitigates and controls it, monitors and reports it, then learns and improves.

Answer

Operational losses arise from very different processes, events and control environments, so one model or control cannot represent every exposure.

Question 9

Which distinction about Internal controls must be preserved?

Accepted Answer

Controls cover data, models, assumptions, aggregation, approvals, documentation and integrity of reported results.

Answer

The contingency plan identifies feasible actions, decision authority, timing and constraints under capital stress.

Answer

A scenario should be severe enough to test vulnerabilities and coherent enough that projected losses and revenues are meaningful.

Answer

The scenario must include variables needed by material portfolios and businesses, with justified translation where direct variables are unavailable.

Question 10

Which distinction about Stressed VaR must be preserved?

Accepted Answer

Stressed VaR applies the VaR model to a continuous period of significant financial stress relevant to the portfolio.

Answer

The leverage ratio is a non-risk-based backstop comparing Tier 1 capital with an exposure measure.

Answer

Conservation and countercyclical buffers sit above minimum requirements and restrict distributions when depleted.

Answer

Basel III introduced short-term and structural funding standards to complement solvency requirements.

Question 11

Which distinction about IRB restriction must be preserved?

Accepted Answer

Certain exposure classes are no longer eligible for the advanced IRB approach because robust parameter estimation is difficult.

Answer

The standardized measurement approach replaces earlier operational-risk capital approaches with a business-indicator-based method.

Answer

A leverage-ratio buffer applies to global systemically important banks in addition to the minimum leverage requirement.

Answer

Leverage exposure rules were refined for derivatives, securities financing and other off-balance-sheet items.

Question 12

Which distinction about Cyber-risk culture must be preserved?

Accepted Answer

Awareness, training, challenge and incident reporting influence how people recognize and respond to cyber threats.

Answer

Penetration testing simulates attacks to identify exploitable weaknesses but must sit within a broader assurance and remediation program.

Answer

Response plans define detection, containment, eradication, recovery, communication, evidence and decision responsibilities.

Answer

Timely sharing among firms, regulators and security agencies can improve collective defense when confidentiality and legal constraints are managed.

Question 13

During final book-level practice, which statement about Operational-risk committee is accurate?

Accepted Answer

The operational-risk committee challenges risk assessments, loss events, metrics, scenarios, acceptance decisions and overdue actions.

Answer

Aggregated reporting must preserve definitions, lineage and material local detail; adding unlike scores can create false precision.

Answer

Pillar 3 uses public disclosure to support market discipline and includes information relevant to operational-risk capital and management.

Answer

Resilience reporting connects important services, impact tolerances, dependencies, testing outcomes, incidents and remediation.

Question 14

During final book-level practice, which statement about Security architecture is accurate?

Accepted Answer

Architecture and standards provide consistent identity, access, network, data, development and monitoring controls.

Answer

Timely sharing among firms, regulators and security agencies can improve collective defense when confidentiality and legal constraints are managed.

Answer

A service provider can create availability, confidentiality, integrity and concentration exposure even when the activity is outsourced.

Answer

Useful metrics connect control performance, threat activity, incidents, response and service impact rather than counting activity alone.

Question 15

During final book-level practice, which statement about External fraud is accurate?

Accepted Answer

External fraud includes theft, deception, cyber-enabled fraud and unauthorized activity by parties outside the firm.

Answer

Protected reporting channels help surface misconduct that routine controls may not detect and require safeguards against retaliation.

Answer

A case study should distinguish the immediate act from incentive, access, governance and control conditions that allowed it.

Answer

Effective remediation addresses affected customers, loss recovery, control redesign, accountability and verification, not only the individual event.

GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) Free Sample Paper & Practice Questions

Which statement correctly explains Operational risk?

GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث)

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GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث) Free Sample Paper & Practice Questions

Which statement correctly explains Operational risk?

GARP FRM الجزء الثاني — المخاطر التشغيلية والمرونة (الكتاب الثالث)

افتح خصم 20٪

About This Free Sample Paper

Why Use a Question Bank & Mock Exams?

Frequently Asked Questions

Pass on Your First Attempt

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