FRM 2026 Part I Foundations of Risk Management Operational Risk Free Quiz 1

Practice FRM 2026 Part I Foundations of Risk Management MCQs from Operational Risk. Get instant results with Explanation.

General10 MCQs

1. What is operational risk?

A. Operational risk is only about system failuresB. Operational risk arises from inadequate or failed processes, people, systems, or external eventsC. Operational risk is the same as market riskD. Operational risk is not significant for financial institutions

2. How does the Basel Committee define operational risk?

A. Operational risk includes strategic riskB. Operational risk includes reputational riskC. Operational risk includes legal risk but excludes strategic and reputational riskD. Operational risk is only about external events

3. How many categories of operational risk events are there under Basel?

A. There are seven categories of operational risk events under BaselB. There are three categories of operational risk eventsC. There are five categories of operational risk eventsD. There are ten categories of operational risk events

4. What is internal fraud in operational risk?

A. Internal fraud is not an operational riskB. Internal fraud is only about employee theftC. Internal fraud is the same as external fraudD. Internal fraud includes misappropriation, bribery, and insider trading

5. What is external fraud in operational risk?

A. External fraud is not an operational riskB. External fraud includes cybercrime, hacking, and identity theftC. External fraud is the same as internal fraudD. External fraud is only about physical theft

General10 MCQs

6. What is cyber risk in operational risk?

A. Cyber risk is not part of operational riskB. Cyber risk is the same as market riskC. Cyber risk is a subset of operational risk, including cyber-attacks and data breachesD. Cyber risk is only for technology companies

7. What is business disruption in operational risk?

A. Business disruption includes losses from hardware failures, system outages, and utility disruptionsB. Business disruption is not an operational riskC. Business disruption is the same as external fraudD. Business disruption is only about power outages

8. What does operational risk management involve?

A. Operational risk management is the same as market risk managementB. Operational risk management is only about complianceC. Operational risk management does not include scenario analysisD. Operational risk management includes RCSAs, scenario analysis, and KRIs

9. What is Risk and Control Self-Assessment (RCSA)?

A. RCSA is the same as internal auditB. RCSA is a process where business units assess their operational risks and controlsC. RCSA is not used in operational risk managementD. RCSA is only for financial risks

10. What are Key Risk Indicators (KRIs) in operational risk?

A. KRIs are the same as KPIsB. KRIs are not used in operational risk managementC. KRIs provide early warning of increasing operational riskD. KRIs are only for financial risks

Quick Links

Latest Admissions

International Scholarships

Popular Medical Colleges

Popular Universities

Scholarships

Entry Tests Preparation

International Entry Tests

Follow Us

Aggregate Calculator