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