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- APRP VOCAB 2023-2024 EXPLAINED COMPLETE 200 VOCAB
- AND DETAILED EXPLANATIONS |AGRADE
- Basel III Regulatory Capital – ANSWER- A comprehensive set of
- reform measures, developed by the Basel Committee on Banking
- Supervision (BCBS), to strengthen the regulation, supervision, and risk
- management of the banking sector, including both liquidity and capital
- reforms.
- Business Continuity Planning (BCP) – ANSWER- Develop, implement,
- and test appropriate disaster recovery, in order to maintain acceptable
- retail payment-related customer service levels
- Business Impact Analysis (BIA) – ANSWER- A flow analysis that
- involves an assessment and prioritization of those business functions and
- processes that must be recovered. should also consider the impact of
- legal and regulatory requirements. should also estimate the maximum
- allowable downtime for critical business functions and processes and the
- acceptable level of losses (data, operations, financial, reputation, and
- market share) associated with this estimated downtime
- Biometrics – ANSWER- Methods include voice scanning and iris and
- retinal imagingfinger scan linked to his or her personal identification
- information.
- Capital adequacy – ANSWER- Refers to the amount of capital a
- financial institution has to hold as required by its regulator
- Card Products – ANSWER- Credit cards, Debit cards and Prepaid cards
- CDD – ANSWER- Customer Due Diligence
- Consumer Financial Protection Bureau (CFPB) – ANSWER- Rulemaking authority and, with respect to entities within its jurisdiction,
- enforcement authority to prevent unfair, deceptive, or abusive acts or
- practices in connection with any transaction with a consumer for a
- consumer financial product or service, or the offering of a consumer
- financial product or service
- Challenge Questions – ANSWER- Used as a backup in the event that
- primary logon authentication technique becomes inoperable or presents
- an unexpected characteristic. Can include “out-of-wallet’ questions,
- which are questions that a user only knows and a fraudster cannot obtain
- just with stolen identity.
- Change Control Policy – ANSWER- Addresses potential changes to the
- operating environment
- Charge-backs – ANSWER- A demand by a credit-card provider for a
- retailer to make good the loss on a fraudulent or disputed transaction
- Check/Remote Deposit Capture (RDC) Policy – ANSWER- Sets forth
- policies and procedures adopted by the FI in regards to risks associated
- with its offering of RDC services to its accountholders
- CIP – ANSWER- Customer Identification Program
- Closed Loop Network – ANSWER- Provides payment services directly
- to merchants and cardholders by the owner of the network without
- involving financial institutions as intermediaries. American Express and
- Discover are two examples.
- Compliance Risk – ANSWER- Party to a transaction fails to comply,
- either knowingly or inadvertently with payment system rules and
- policies, regulations and applicable U.S. and state law
- Compliance risk management – ANSWER- Be aware of all payment
- system rules, policies, regulations and applicable U.S. and state law
- Contactless cards – ANSWER- Have an embedded computer chip with
- financial and personal information used for payment transactions, and
- they employ RFID technology for payment transmission. They include a
- microcontroller (or equivalent intelligence) and internal memory and
- have the ability to secure, store, and provide access to data on the card.
- Control Activities – ANSWER- Include the policies & procedures
- institutions establish to manage risks and ensure predefined control
- objectives are met. Should cover all key areas of an organization and
- address items such as organizational structures, committee compositions
- and authority levels, officer approval levels, access controls (physical
- and electronic), audit programs, monitoring procedures, remedial
- actions, and reporting mechanisms.
- Control Environment – ANSWER- Begins with a bank’s BOD & senior
- management, who are responsible for developing effective internal
- control systems and ensuring all personnel understand and respect the
- importance of internal controls. Control systems should be designed to
- provide reasonable assurance that appropriately implemented internal
- controls will prevent or detect: Materially inaccurate, incomplete, or
- unauthorized transactions; Deficiencies in the safeguarding of assets;
- Unreliable financial and regulatory reporting; Deviations from laws,
- regulations, and internal policies
- COSO – ANSWER- Committee Of Sponsoring Organizations Of
- Treadway Commission
- Credit Analysis Techniques – ANSWER- “There are several techniques
- that can be used when performing credit analysis of a business or
- organization, including: Credit Policy; Risk Rating; Ongoing Monitoring
- and Review; Cross-Channel; Prohibited/Restricted Businesses”
- Credit Policy – ANSWER- Establishing this policy is just one part of the
- credit analysis techniques used by financial institutions
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