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Flashcards

RBIII

Phil McLean English 107 cards

Cards in this deck (107)

  1. 1The Harvard Business Review found that what percentage of change initiatives fail to achieve their desired business outcomes?0.66
  2. 2A transformational leader willing to ‘self-correct’ is showing which skill?The ability to revisit his/her personal and long-held assumptions about business and success
  3. 3Which of the following is considered an additional leadership skill, building on the ‘timeless’ skills already required?Empathy
  4. 4Ferrell, Fraedrich and Ferrell state that there are how many habits of ethical leaders?Seven
  5. 5When William Bridges describes the difference between change and transition, he refers to change as being situational and something that will happen without people, whereas transition deals with which of the following impacts on people?Psychological
  6. 6Kotter outlines eight critical steps in transforming an organisation. Which is Step 1?Increase urgency
  7. 7Which of the following is a ‘what works’ for the fourth step (communicate for buy-in) in Kotter’s eight steps to effective change management?Speaking to anxieties, confusion, anger and distrust
  8. 8In Myers Briggs, there are four pairs of personality traits that are the extremes on a scale (e.g. introvert/extrovert). What is the trait that is the opposite of intuitive?Sensing
  9. 9Which of the following ‘additional’ skills linked with transformational leadership has associations with the necessity for partnership building with FinTechs?Win and win
  10. 10Digital change often requires a leap of faith, due to minimal information on how the new environment might be, and therefore requires the leader to be able to provide the source of validation needed. Which persuasion principle is this?Principle of sound proof
  11. 11What is the key to preserving a bank’s unique position in the market?Human capital
  12. 12A number of leading banks have recently rationalised and simplified their product ranges. What is the percentage decrease in documentation reduction?0.8
  13. 13How do digital native companies change consumer behaviour and expectations?By delivering a great customer experience
  14. 14Two years after setup, how much had Continental Lite lost?$140 million
  15. 15What does the McKinsey 7S tool analyse?Organisational design
  16. 16What is the organisational key for a digital bank?Eliminating silos
  17. 17How many key traits are there for effective strategy execution as per Neilson, Martin and Powers?Five
  18. 18When was the TRIZ-TIPS Institute established?1971
  19. 19Who should be trained about the theory of the Three Time Horizons of Innovation?Middle management
  20. 20Which of the following relating to the four quadrants of the Ansoff Matrix is NOT appropriate for a KPI on cross-selling?Diversification
  21. 21According to brand expert Scott Davis, involvement of which of the following is central to successful brand management?Leadership
  22. 22The question What do I think or feel about you? in Keller’s ‘branding ladder’ relates to which of the following statements?Elicit the right brand response
  23. 23Brand Equity creates which of the following kinds of differentiation for customers, leading to a sustainable competitive advantage?Non-price
  24. 24In the brand pyramid, what variable is an antecedent of Brand Meaning?Performance and Imagery
  25. 25One of the main concepts of Internal Marketing is to view employees as what kind of customers?Internal
  26. 26A central idea of co-branding is to:generate greater market reach
  27. 27Which level of integration between an old and a new bank brand can be described by the following statement: “Most elements of the old and the new brand match and both use the same brand name”?Strong integration
  28. 28When DEG is neutral, the effect is that:it creates an aura of certainty and professionalism
  29. 29Banks have to choose between which of the following in regard to their social media presence?Blanket strategy and selective strategy
  30. 30Millennials can be described as:Native to using digital channels and typically lacking financial management experience
  31. 31Is the provision of deposit insurance a good or a bad thing for bank governance, and why?A bad thing, because its existence might encourage managers into excessive risk taking
  32. 32What is the most important factor when designing a bank’s operational structure to deliver a positive customer experience?Ensuring the free flow of information across business units
  33. 33Why is the ‘American model’ of corporate governance not suitable for a bank?Aligning the interests of shareholders and managers is not achievable, since bank balance sheets are highly levered
  34. 34It is most likely that silo thinking in a bank is the result of:A weak ethical bank culture
  35. 35An arrangement where one person is authorised to act for, or in the place of, another is known as:Stewardship
  36. 36According to stewardship theory, senior management values collaboration with all the stakeholders in the organisation. This acts to:Promote the interests of all stakeholders
  37. 37An executive compensation plan is said to be ‘Sensitive to risk time horizons’ when:Variable compensation payments are deferred for several years to permit a full realisation of risky outcomes, which may not be fully revealed in a short period of time
  38. 38According to the Basel Committee on Banking Supervision guidelines on governance (2015), senior management must:Carry out and manage the bank’s activities in a manner consistent with the business strategy, remuneration and other policies approved by the board
  39. 39To whom is senior management responsible and accountable for the sound and prudent day-to-day management of the bank?The board of directors
  40. 40The cornerstones of corporate governance are executive compensation, boards, risk management, and:Market discipline
  41. 41What achieves sustained cost reduction?Process efficiency through simplification
  42. 42What is the most likely outcome of retaining legacy products?Increased IT costs
  43. 43Before pursuing a multi-channel strategy, what is required first?Getting the basics right
  44. 44Which of the lists below represents Gulati’s 4Cs?Connection, capability, coordination and cooperation
  45. 45For a bank seeking to migrate customers to lower-cost channels, what is the right course of action for the bank?Demonstrate a net benefit to customers
  46. 46Which risk increases because of sunk cost bias in operational efficiency projects?Information risk
  47. 47What will determine the extent of a bank’s operational excellence?Selection and management of partners
  48. 48What is dynamic servicing defined by?The underlying user needs
  49. 49What is the purpose of integration?Solution development
  50. 50what did the Kreditech study find about using alternative datasets for credit underwriting.Credit underwriting cost decreases
  51. 51What does the slope of a fixed-income bond’s price–yield curve represent?Dollar duration
  52. 52A relationship of a fixed-income bond’s price–yield is a curve that is said to be convex. What property best describes it?A decreasing negative slope
  53. 53Which one of the following is a determinant of convexity?Less than the square of the maturity of the bond
  54. 54Prepayment on a callable bond is:lowest when interest rates are high
  55. 55When cash inflows from bonds change due to changes in interest rates and the bond does not behave like an option-free bond, what is the best mechanism to use?Effective duration
  56. 56Certain Level 2B assets such as residential mortgage-backed securities (RMBS) rated AA or higher are subject to what haircut?25 per cent
  57. 57A credit exposure is classed as retail if the counterparty is which one of the following?Pooled individuals
  58. 58There is an argument that operational risk is related to the state of the economy. Which of the following is untrue and does not support this perspective?There is a negative correlation with the growth of GDP
  59. 59Which is NOT a characteristic of operational risk?It is bank specific
  60. 60The capital charge is the simple sum of the computed probability distribution function of the cumulative operational loss. What is this called?Op Var
  61. 61Leaders manage the change process by:setting responsibilities and adopting a programme of performance evaluation
  62. 62According to Ferrell, Fraedrich and Ferrell, ethical leaders have which of the following habits?Ethical leaders are transparent and actively involved in decision making
  63. 63Transformational leaders create a bank culture that does which of the following to employee engagement?Fosters and enhances
  64. 64Link2Succss proclaims that ‘if people are committed to the shared vision created by the leader, they can normally be counted on to remain loyal to it’. From which principle of persuasion is this drawn?Principle of consistency
  65. 65‘Delegating team leadership to the wrong people rather than a single line manager’ is a common pitfall of which of Kotter’s eight steps to transformation?Build the guiding team
  66. 66What is the key action that a leader can take in order to reduce staff turnover?Encourage the team by involving the team in the initiative
  67. 67In order to make dynamic change, which of the following Myers Briggs traits best matches the quality in a leader as described in the case study?Intuitive
  68. 68‘Recognise and reward excellence’ is a tip for leaders to improve which of Kotter’s eight steps to transformation?Empower action
  69. 69What do banks still face continuous pressure from?Margins
  70. 70What defines the strategy as outlined by Deutsche Bank?It is all about execution
  71. 71Which critical aspects are required to create long-term sustainable financial performance?The right people in the right positions, risk mitigation and value proposition delivered in a seamless manner
  72. 72The Boston Consulting Group (BCG) launched a paper on the expectations of customers and found that they were becoming more complex. How many customers were surveyed?30000
  73. 73In the Boston Consulting Group (BCG) view, how many strengths anchor bionic retail banks?Six
  74. 74What feedback do the 360,000 customers surveyed by Deutsche Bank provide in light of the Boston Consulting Group (BCG) bionic retail bank strengths?Customer insight
  75. 75What is the role of the CEO as per the Boston Consulting Group (BCG) in relation to a bionic retail bank?Investor
  76. 76In regard to financially educating a customer, what does FMA stand for?First Mover Advantage
  77. 77While choosing a social media strategy, a selective strategy pertains to:Maintaining a niche focus
  78. 78The term ‘Coopetition’ is an amalgamation of:Competition and Cooperation
  79. 79Social media platforms speak of a bank’s ‘digital story’ and create a context of logic by answering the question:Why?
  80. 80Which of the following is a social media platform?Instagram
  81. 81Which of the following characteristics is applicable to social media?Instantaneous
  82. 82Bank brand managers are advised to do which of the following in regard to their digital capabilities to support their brands?Underpromise and overdeliver
  83. 83Is social media an important tool for banking brand managers to promote their brand and raise awareness?Yes, because of its global reach and instantaneous connectivity
  84. 84Imani wants to develop training for board members. In its Principles for Enhancing Corporate Governance (2010), the Basel Committee on Banking Supervision (BCBS) states that board members should be, and remain, qualified relevant to:The correct answer is: each of the material financial activities the bank intends to pursue
  85. 85In regard to independent directors, best practice would indicate that a bank’s board of directors should comprise a significant proportion of directors who are independent and:have material expertise and experience in retail banking
  86. 86Regarding a bank’s directors, it is not clear whether directors who hold several directorships bring experience to the board or are diluting their effectiveness on any given board because of their ‘busyness’. Most experts recommend that multiple directorslimited, in order to encourage director focus on board matters
  87. 87One of the corporate governance obligations of senior management is to:align with the board of directors to establish the leadership style by setting a good example
  88. 88According to the Basel Committee on Banking Supervision (2010), senior management should have:necessary experience and required expertise in retail banking as well as personal and professional integrity
  89. 89The economics of regulation are based on the notion that banks and other financial institutions may engage in excessive risk taking that:can only be discerned after the negative consequences are observed
  90. 90Which one of the following is NOT a role of a bank supervisor, according to the Basel Committee on Banking Supervision guidelines on governance (2015)? Supervisors should:oversee the implementation of the bank’s remuneration system
  91. 91Which one of the following is NOT an element of risk governance in banks, according to best practice?The Chief Risk Officer (CRO) should work independently of the risk committee except when specifically instructed by the board
  92. 92What is creating the drive for new money management apps?Open banking
  93. 93What is open banking?The removal of the banks’ monopoly on determining or controlling the financial behaviour of their customers.
  94. 94What kind of customer is attracted to these apps?The tech savvy
  95. 95In open banking, APIs are digital gateways with a pre-established set of rules that allow for safe, automated access and collaboration between distinct parties. What does the access granted facilitate?Controlled delivery of customer data to third parties
  96. 96Which of the following is NOT the bank’s role in an open environment?To ensure that users can access cheaper options
  97. 97How does open banking impact the business model of retail finance?It creates a data-driven business model
  98. 98What is Monzo trying to prove?That it is possible to build a cloud-native, mobile-first bank while being compliant
  99. 99What is the first form of benefit of cloud services?They allow the bank to more easily develop elaborate solutions with third parties
  100. 100An average percentage of obligor that default in the rating grade over a one year period specifies which item of the four factors below?Probability of default.
  101. 101A bank is not required to include a capital charge to cover the mark-to-market losses on the counter party risk. When does a capital charge become pertinent?Certain Securities Financing Transactions
  102. 102In formulating a Risk adjusted return, Revenues, Operating Expenses, and Capital Benefits are included. This formulation is not complete unless a further item is included from the list below. Which is the correct item?Expected Loss
  103. 103When collecting loss data which item below represents a line of business instead of an event?Agency services
  104. 104When collecting loss data, which item below represents an event instead of a line of business?Client, products and business services
  105. 105When calculating the expected loss amount ELA I,j or element of the capital charge in operational risk management, how is the gamma value obtained?Regulator
  106. 106An advanced version of an internal methodology is the loss distribution approach using estimates. Which item below needs to be estimated for each type of risk in each business unit?Impact and frequency
  107. 107These methodologies rely on the availability of data related to the operational risk. Where the data is not available internally for example when it is an infrequent but severe event, what source is suggested?Pooled data

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Flashcards on RBIII, created by Phil McLean on 25/06/2018.
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Phil McLean
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