RBC RBC - Online Assessment Risk Management and Compliance Questions and Answers 2

Question 1

What is a 'conflict of interest' in the banking context and how should it be handled?

Accepted Answer

A situation where personal interests could improperly influence professional judgment; it must be disclosed and managed

Answer

A disagreement between two bank employees about client strategy, resolved by a manager

Answer

A legal dispute between the bank and a client over loan terms

Answer

A difference of opinion between RBC and a regulator about policy interpretation

Question 2

What is the key purpose of a bank's 'code of conduct'?

Accepted Answer

To establish the ethical standards and behavioural expectations all employees must follow

Answer

To set annual sales targets for each department

Answer

To define the bank's advertising and marketing strategy

Answer

To outline branch opening and closing procedures

Question 3

Which of the following scenarios BEST represents a 'phishing' attack targeting a bank client?

Accepted Answer

A fraudster sends an email impersonating RBC asking the client to click a link and enter their login credentials

Answer

A client forgets their PIN and requests a reset at the branch

Answer

A client accidentally transfers funds to the wrong account number

Answer

An employee prints a client statement and leaves it at a shared printer

Question 4

What does 'regulatory capital' refer to at a bank such as RBC?

Accepted Answer

The minimum amount of capital a bank must hold as required by banking regulators to absorb unexpected losses

Answer

The total value of all client deposits held at the bank

Answer

The funds set aside exclusively for mortgage lending

Answer

The bank's annual budget allocated to compliance training

Question 5

An RBC employee is approached by a friend asking for confidential details about another client's account. What is the correct response?

Accepted Answer

Decline the request, as sharing client information without consent violates privacy laws and bank policy

Answer

Share the information since the request comes from a trusted personal contact

Answer

Provide only general account details, not specific transaction history

Answer

Check with a supervisor first and share if the supervisor approves verbally

Question 6

What is 'market risk' in the context of a bank's trading operations?

Accepted Answer

The risk of losses in on- and off-balance-sheet positions due to adverse movements in market prices such as interest rates, equities, or FX

Answer

The risk that bank branches will lose clients to competitors

Answer

The risk that a major client will move their business to another institution

Answer

The risk of a data breach in the bank's trading systems