Operational Risk

The Advanced Level Test on Risk and Compliance Operations is tailored for seasoned professionals with a substantial background in banking and finance, validating expertise needed for strategic and high-responsibility roles. This comprehensive evaluation explores sophisticated frameworks, such as the Basel III regulatory framework, which ensures banks maintain sufficient capital buffer to withstand financial stress.

Scenarios covering the stratified aspects of Basel III, such as Pillar 2, which involves bank-specific supervisory review processes, stress testing and liquidity risk, are introduced to ensure candidates can translate complex regulations into actionable practices.

Questions on the Volcker Rule test participants' understanding of securities trading compliance and investment behaviours, while advanced topics like FATCA assess knowledge of international taxation and anti-evasion regulations.

Counterparty Credit Risk in derivatives further gauges an individual’s ability to handle sophisticated risk profiles. Additionally, operational risk is explored with emphasis on real-world application, emphasising loss potential from inadequate internal processes and the importance of a strategic mindset rather than operational tactics, such as steering clear from setting interest rates.

Overall, this advanced test confirms that candidates are not only well-versed in theory but also equipped to lead with strategic vision and sound judgment, making them indispensable assets in today’s intricate financial landscape.