Operational Risk — FRM Part 2 Practice Questions

115 free FRM Part 2 questions on Operational Risk: 49 easy, 54 medium, and 12 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn Operational Risk from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. Which of the following describes the 'One Big Loss' principle for heavy-tailed (subexponential) distributions?
2. In the Bow-Tie analysis framework, where do 'Preventive Controls' sit relative to the operational event?
3. A customer consistently deposits $9,800 in cash at three dif… — This behavior is a classic 'red flag' for whic
4. The Standardized Measurement Approach (SMA) formula is composed of two primary factors: the Business Indicator
5. What is the regulatory treatment for 'Boundary Events' regarding capital requirements under Basel III?
6. In the Standardized Measurement Approach (SMA), the Business Indicator (BI) serves as a proxy for which of the
7. Under a proper governance framework, 'Model Limitations' must be:
8. If the bank had a poor loss history (LC > BIC), what is the impact on its capital?
9. What is the minimum threshold for an individual loss to be included in this calculation under standard Basel r
10. Under the three pillars of model validation, which pillar is concerned with verifying that the model's underly
11. What is the marginal coefficient for the portion of the BI that exceeds 30 billion euros?
12. What is the relationship between the Business Indicator (BI) and the Business Indicator Component (BIC)?
13. What does the resulting ILM suggest about the supervisor's view of the bank's risk profile?
14. A bank's Risk Appetite Framework (RAF) defines 'Risk Capacit… — Where should the 'Risk Appetite' be set relati
15. Under the current Basel Standardized Measurement Approach (SMA) for operational risk, which factor is the sole
16. Using the Basel III Standardized Measurement Approach (SMA), what is the resulting Business Indicator Componen
17. According to standard regulatory definitions (such as SR 11-7), which three components are required to define
18. A material change to a model is most likely to be triggered by which event?
19. How long is the historical window required for calculating the average annual operational losses used in the S
20. According to SR 11-7, what are the two primary channels through which 'Model Risk' arises?
21. A bank's internal audit department discovers that a trader h… — Which historical case and control failure does
22. If the Business Indicator Component (BIC) is $2.0 billion and the Internal Loss Multiplier (ILM) is 1.0, what
23. Which coefficient is applied to the marginal segment of the Business Indicator (BI) exceeding €30 billion?
24. Which of the following describes 'Self-Assessment Bias' in the Risk and Control Self-Assessment (RCSA) process
25. Why is hot-failover often insufficient against a ransomware attack that corrupts data?
26. Which of the following is NOT one of them?
27. Under the Standardized Measurement Approach (SMA), the Business Indicator (BI) serves primarily as a proxy for
28. Which principle has the correspondent bank primarily violated?
29. An operational risk event occurs where an operations error l… — According to the Basel boundary rules, how is
30. When a bank prioritizes validation resources by grouping models based on their potential P&L impact and method