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Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?
A. Loan officers may override the lending criteria established by senior management.
B. Borrowers may not sign all required mortgage loan documentation.
C. The bank's loan documentation may not meet the government's disclosure requirements.
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Answer: A
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Which of the following is MOST helpful in developing key risk indicator (KRl) thresholds?
A. Control performance predictions
B. Remediation activity progress
C. IT service level agreements (SLAs)
D. Loss expectancy information
Answer: D
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