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SBI Fraud Risk Management Overview

1. The timeframe for deciding on suspicious transactions reported by RFIA/SARG is one month. 2. The Chairman is the competent authority to sign LOC opening requests. 3. Statistical closure of frauds can be done for cases involving up to Rs. 1 lakh.

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Rishikesh P A
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798 views6 pages

SBI Fraud Risk Management Overview

1. The timeframe for deciding on suspicious transactions reported by RFIA/SARG is one month. 2. The Chairman is the competent authority to sign LOC opening requests. 3. Statistical closure of frauds can be done for cases involving up to Rs. 1 lakh.

Uploaded by

Rishikesh P A
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Capital and Risk Management
  • Loss Data and Credit Risk
  • Fraud Investigation and Cybersecurity
  • Regulatory Compliance and Risk Categories
  • Fraud Risks and Information Security
  • Risk Mitigation and Crisis Management

1.

Unexpected loss is covered by


b) Capital

2. What is the timeframe for taking a decision on suspicious transactions pointed out by RFIA / SARG.
A: One month

3. The General Manager of Fraud Monitoring Cell (FMC), FPMD at Corporate Centre will be Nodal Officer,
of the Bank, for sending request of opening LOC to the Bureau of Immigration

4. The competent authority to Sign LOC Opening request is Chairman

5. Statistical Closure of Frauds can be done in cases


Fraud involving upto Rs. 1.00 Lacs

6. Internal Loss Data would include


Actual Loss
Potential Loss
Near Misses
Attempted Frauds

7. SBI has developed a strategy to share customer information database between offices in two countries.
In this situation, it is MOST important to ensure (Negative Marking)
Data is encrypted in transit and at rest
Data sharing complies with local laws and regulation at both locations
A nondisclosure agreement is signed
Risk coverage is split between the two locations sharing data

8. Staff accountability in case of misappropriation of funds by staff members to be completed within


___weeks under Fast Track Disciplinary Proceedings Mechanism (FTDPM)
12 weeks
24 weeks
48 weeks
52 weeks

9. A walk in Customer is defined


Customers whose accounts are inoperative and there is no transaction for last two years.
Customers who have only deposit accounts and do not avail any loan from the Bank
A person who does not have an account based relationship with the Bank, but undertakes
transaction with us.
Customers with deposit and loan accounts both

10. Which is the most appropriate method to prevent unauthorized access to your desktop if you are leaving
your workstation for a short duration (Negative Marking)
Lock the Desktop using Windows Key + L

11. Who is the Designated Officer for receiving complaint under Whistle Blower Policy

DGM (Vigilance) at Circles and CVO at Corporate Centre


DGM & CDO at Circles and CGM (HR) at Corporate Centre
DGM & CFO at Circles and CGM (FPMD) at Corporate Centre
AGM (HR) at Circles and DGM (HR) at Corporate Centre

12. Which of the following provide fixed income (Bond) price for valuationon a daily basis.
RBI
FBIL
SEBI
FEDAI
13. With reference to LGD, what is the difference between F-IRB and A-IRB
F-IRB permits to use prescribed LGD estimates and A-IRB permits to use own internal LGD
estimates.
A-IRB permits to use prescribed LGD estimates and F-IRB permits to use own internal LGD estimates
Both approaches allows to use internal LGD estmates
Both approaches are same, no difference

14. What is breach of confidentiality


The type of violation involves unauthorized reading of data

15. Compromising Confidential Information comes under


Vulnerability

16. A landless labour having no document of identity and address proof approaches your branch for opening
of an account. What will you do
Option A. Will open the account after obtaining self attested….

17. In measuring the capital requirements for General Market Risk, which are designed to capture rge risk
of loss arising out of changes in the market interest rates which are the two principal methods
Optimum and Marginal

18. The Bank has approved _____ for handling Cyber Security incidents.
Cyber Security Policy and Standards and a SOP

19. Which of the following provide fixed income (Bond) price for valuation on a daily basis
SEBI

20. With respect to LGD, what is the difference between F-IRB and A-IRB
F-IRB permits to use prescribed LGD estimates and A-IRB permits to use own internal LGD
estimates

21. Role of ORMD is to implement and maintain ORM framework


TRUE

22. KRI thresholds are fixed after going through


Both a&b

23. Wef 30 June 2019, applicable risk weightage for Unrated Corporate exposure above Rs.200 crores
1.5

24. If prices of Gold fluctuate this is a type of


Commodity risk

25. Minimum total capital including CCB increased from 9.0% to ____ under Basel III
0.121

26. Monitoring of top Single and Group Borrowers in the Bank helps in mitigating which of the following risks
Credit Concentration Risk

27. Hackers get into the company’s systems and steal valuable data
Operational risk

28. Do we have policies on how / what you can and cannot use email for?
Yes, there are policies limiting what emails I can and cannot send while at work
29. The success of a computer forensic investigation depends on the concept of?
Chain of evidence

30. Which of the following refers to a series of characters used to verify a user’s identity?
Password

31. When an incident of suspected fraudulent activity comes to notice, who will take a prima facie view on
it?
Respective Controller

32. __________ involves using electronic means, including the Internet, to harass a person or a group of
people.
Cyberstalking

33. In a Banks SME loan portfolios, 200 accounts are NPA, amounting to 400 crores. Out of this recovery
could be made only in 100 accounts amounting to 300 crores. What will be the LGD of the portfolios?
0.5

34. Who is the Nodal Officer responsible for vetting the complaint and ensuring that it is as per the prescribed
checklist before reporting the case to CBI
CVO

35. Effective KRIs should be


All of the above

36. Maximum guarantee coverage under CGTMSE scheme is


200 Lakh

37. Substantial exposure limit for single borrower means


The exposure of a single borrower exceeds threshold limit decided in the loan policy of the Bank

38. Risk awareness day


1st September

39. Increasing in number of frauds over the time indicate


Both 1 and 2

40. For non-advance frauds, 100% provision will be made in the same ______
Quarter

41. Who is the competent authority for identification of fraud for cases below 5.00 lac
FIC at circles and Bus
42. Probability that borrower will fail to meet his contractual obligation due to borrower specific or market
specific reasons is called
Default Risk

43. Which of these is a risk transfer ways


Insurance

44. Cash retention limit exceeding at a branch on many occasions is an example of key indicator
TRUE

45. As per RBI guidelines the probable loss over 10 day horizon for calculating VaR at ______ confidence
level
0.95
46. What is the risk weigh for AAA rated foreign sovereigns?
15

47. What does the ‘[Link] at the beginning of a URL denote


That information entered the site is encrypted

48. Authority to approve the market risk management policy of the Bank is
Risk management committee of the board

49. Risks falling under High Risk and Critical Risk categories
Exceed the risk tolerance levels and need to be monitored

50. Suspected Fraud portal contains details of accounts which are suspected as fraudulent by the auditors
under RFIA. The portal is maintained by
CPM Deptt

51. On cancellation of PGEL, on any Foreign Bank, the existing exposure is allowed to be continued till
Maturity of the exposure

52. Timely and quick identification of fraud helps in


All three

53. Which branch can undertake the process of KYC updation


Only Home branch can update

54. Operational controls are commonly utilized in which of the following risk mitigation strategies
Avoid the risk

55. Which category of Agri loans can be covered as MUDRA loans under PMMY
All of the above

56. List of wilful defaulters provides the information for outstanding of


25 lac and above

57. Unexpected Loss is calculated based upon a determined confidence level of ____ of assumed correlation
amongst exposure etc
Equivalent to 99.95%

58. As per bank’s IS policy, User account should be locked out automatically after ____ consecutive
unsuccessful login attempts.
3

59. The three Basel III pillars are _____, ______ and Market Discipline
Minimum capital requirements, Supervisory Reserve Process

60. The main exemptions which would normally be applicable to the Bank are
All of the above

61. Market risk has the following risk components


All of the above

62. A dashboard for fraud prone branches has been developed and made available to controllers by
Data Analytics Department, GITC

63. To prevent or timely identify fraudulent disposal of mortgage property Bank has mandated
Both 1 & 2 are correct
64. Which of the following is a potential fraud risk
All the three

65. Threat to an information cannot be


Transferred

66. Within __ days of appointment, the Insolvency Resolution Professional makes a public announcement,
inviting all the potential creditors to file claim
7 days

67. Segregation of duties is security control primarily used to


Establish dual check

68. Which one of the following transactions does not make any economic sense
Having large number of accounts with the same bank with frequent transfers between different
accounts

69. How is risk calculated?


Likelihood*Impact

70. Cyber frauds are frauds which are committed


Both 1 & 2

71. Market risk limits are based on


VaR

72. Which of the following is the effective way to mitigate the risk of confidential data leakage to unauthorized
stakeholders?
Implement role based access controls

73. Expected Loss refers to


An amount estimated to be sacrificed in a given bad loan

74. BCBS stands for


Basel committee for banking standard

75. Participants of RCSA workshop at an entity have to


All abc above

76. RBI has made mandatory to upload the KYC data to CKYCR is case of
Individual account and legal entity and during the time of KYC updation

77. Which of the following is the indicator of suspicious transactions in a customer account
All of the above

78. The CRA should be reviewed at half yearly intervals for the units
Having CRA SB-10 and worse

79. Key indicators are linked to risks or controls in identified areas


True

80. Whistle blower complaint can be lodged through


Any of these

81. Capital Conservation Buffer (CCB) fully effective from 01.10.2021


82. Global financial crisis period
2008-2009

83. All accounts to be simultaneously examined from angle of possible fraud, when the account are classified
as NPA for limits above Rs crore
50

84. Risk Categorisation helps in


Risk Mitigation

85. What action to be taken in cases where suo moto proceedings initiated by investigating agencies eg CBI
Decision too be taken on case to case basis

86. Investments carried out by the Bank shall fall into the following brad categories
Both a & B

87. Which of the following is not amongst the top Information Security Risk?
Distributed Denial of Service

88. As per Alertness award for near miss events including


From 5 lacs to 25 lacs

89. In suspected fraud cases reported by RFIA, decision as Fraud or No Fraud to be taken by the FIC within
the time
1 month

90. Classification of frauds such as (i) Misappropriation and Criminal Breach of trust, (ii) cheating and forgery
etc are based on various sections of IPC
TRUE

91. In assessing the key variables associated with a potential mortgage loan, a bank will charge a higher
interest rate if the borrower has a relatively
High loan to value ratios

92. Full form of ECLGS


Emergency Credit Line Guarantee Scheme

93. Number of lines of defense in operational risk


3

Common questions

Powered by AI

Data encryption is crucial when sharing customer information between offices in two countries to protect against unauthorized access and ensure data integrity while it is being transmitted and stored. This is important because it safeguards sensitive information from cyber threats and unauthorized interceptions, ensuring compliance with data protection regulations .

Implementing role-based access controls is critical for mitigating the risk of confidential data leakage by ensuring that individuals only have access to data necessary for their job functions. This limits the exposure of sensitive information to unauthorized users, reducing the risk of intentional or accidental disclosures. Such controls also enhance audit trails and accountability, allowing organizations to monitor and adjust access as necessary to ensure a robust security posture .

A high loan-to-value (LTV) ratio generally results in a bank charging a higher interest rate on a mortgage loan. This is because a high LTV ratio indicates higher risk for the bank, as the borrower has less equity in the property and is more likely to default. To compensate for this risk, banks increase the interest rate to safeguard against potential losses from borrower defaults .

When opening an account for a landless laborer without identity and address proof, a bank must balance regulatory compliance with financial inclusion goals. This includes obtaining self-attested documentation or leveraging government schemes that support account opening for underprivileged individuals. Banks must also ensure that streamlined processes do not compromise the statutory compliance for Know Your Customer (KYC) procedures, ensuring a secure addition of new customers while preventing money laundering and fraud .

Accounts that engage in frequent large inter-account transfers can pose risks of money laundering, as these activities may obscure the source of funds and complicate transaction histories. Such transactions might be viewed as economically nonsensical as they do not typically reflect genuine economic activity or business needs, thus triggering suspicion under anti-money laundering regulations. This potentially leads to increased scrutiny and the need for the bank to investigate the legitimacy of such activities .

Decisions on suspicious transactions must be made within one month to ensure timely action can be taken to either confirm or dismiss the suspicion of fraud. This timeline is crucial for minimizing potential losses, protecting customer accounts, and maintaining trust in the banking system. It also ensures regulatory compliance and allows for prompt reporting and investigation if fraud is confirmed .

Under Basel III, market discipline ensures transparency and trust by requiring financial institutions to disclose pertinent risk and capital information, allowing market participants to assess risk profiles. Minimum capital requirements provide a cushion against losses, ensuring that institutions have a sufficient base of equity to absorb shocks. The supervisory review process involves regulators in evaluating banks' risk assessments and capital strategies, ensuring that their approaches are robust and market conditions are adequately addressed. Together, these pillars enhance stability by reinforcing sound risk management and regulatory oversight .

Statistical closure of frauds for amounts up to Rs. 1.00 Lacs allows banks to streamline their processes for minor cases, focusing resources on more significant frauds. By statistically closing smaller cases, banks can systematically conclude investigations that involve minor financial impacts, allowing resolution without extensive manual intervention .

The emphasis on a risk weightage of 1.5 for unrated corporate exposure above Rs. 200 crores compels the bank to be more stringent in its lending practices, potentially reducing exposure to high-risk entities. This strategy involves a more detailed review of potential borrowers' financial health and management capability, encouraging better risk assessment practices and ultimately protecting the bank's financial stability by mitigating credit default risks .

Segregation of duties is crucial in security management to prevent fraud and errors by ensuring that no single individual has control over all phases of a transaction. In banking institutions, this reduces the risk of misuse of authority and collusion by distributing responsibilities among multiple people, thus creating checks and balances within the organizational structure .

1. Unexpected loss is covered by b) Capital 2. What is the timeframe for taking a decision on suspicious transactions
13. With reference to LGD, what is the difference between F-IRB and A-IRB F-IRB permits to use prescribed LGD estimates an
29. The success of a computer forensic investigation depends on the concept of? Chain of evidence 30. Which of the follow
46. What is the risk weigh for AAA rated foreign sovereigns? 15 47. What does the ‘https://’ at the beginning of a URL de
64. Which of the following is a potential fraud risk All the three 65. Threat to an information cannot be Transferred
82. Global financial crisis period 2008-2009 83. All accounts to be simultaneously examined from angle of possible fraud,

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