Question

When a Bank fails to comply with regulatory requirements, it is known as _______

A Legal risk Correct Answer Incorrect Answer
B Compliance risk Correct Answer Incorrect Answer
C Transaction risk Correct Answer Incorrect Answer
D Operational risk Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Compliance risk  is an organization's potential exposure to legal penalties, monetary fines, reputation damages and material loss, caused by a failure to act in accordance with government laws, industry regulations, or prescribed best practices . When a Bank fails to comply with regulatory requirements, it may face Compliance Risk. Compliance Risk is also known as Integrity Risk.

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