GARP SCR - Chapter 6 - Tushar Johri

123456789101112131415161718192021222324
Across
  1. 3. Change in agricultural productivity due to climate change is a type of _____ risk
  2. 5. Large-scale dislocations and repricings resulting from climate risk are expected to be a problem. These kinds of market changes are classified under ___ risk rather than liquidity risk
  3. 8. Seen horizontally, the bank describes its risk and control structure as a “three lines of defense” model. Local and regional risk committees at the bank, as well as regional risk managers, constitute the ____ line of defense
  4. 11. A “climate ______ moment” could cause abrupt and wide enough repricing and dislocation to constitute a market liquidity shock
  5. 14. One important transmission channel from climate to ____ risk runs through operational risk
  6. 16. “Climate Value at Risk,” which, like standard VaR, is meant to capture precise estimates of climate-related financial losses. (True/Nope)
  7. 17. Operational risk, due to climate change, has a _____ potential to cause systemic / financial stability risk
  8. 18. Hypothetically,if a portfolio's CVaR is determined to be $1,000,000 at a confidence level of 100%, it means there is ___ % chance of not making a loss (Zero/Cent)
  9. 19. CVaR shows that construction, coal, and electrical utilities are the most exposed to a combination of physical and transition risks (True/Nope)
  10. 21. The best-and worst-in class of an index is a simple way of examining physical risk at___ level
  11. 22. According to COSO, the component of ERM that best relates to continuous improvement is review and revision (True/Nope)
  12. 23. An organization's directors, management, external auditors, and internal auditors all play important roles in creating a proper control environment. Senior management is primarily responsible for Designing and operating a control system that provides reasonable assurance that established objectives and goals will be achieved (True/Nope)
  13. 24. Risk response by the Management of the company purchasing insurance for previously uninsured asset is called as risk _____
Down
  1. 1. Credit risk has _____ potential to cause systemic / financial stability risk
  2. 2. The XYZ Bank estimates the probability of default (PD) for its portfolio of agricultural loans to be 3% annually. Due to climate change-induced droughts, the bank expects the loss given default (LGD) to increase by 20%. If the average outstanding loan amount in the portfolio is $500,000, expected annual loss from default due to climate change is ______ thousand (in words)
  3. 4. climate risk filters through to companies more gradually through increased credit risk rather than abruptly through ______ risk
  4. 6. Risk _____  involves gathering data on the actual scope of these risks.
  5. 7. To reach an understanding of _____ risks, global climate models must be downscaled, both in spatial and temporal resolution
  6. 9. Repricing of equities,fixed income,commodities etc.due to climate change is a ____ risk
  7. 10. A manufacturing company anticipates that it will not be able to source the raw materials from local sources in coming years, hence it has decided to relocate its manufacturing facility. This risk response is called as risk ______
  8. 12. Tushar Johri has created this crossword. This is a dummy clue. (Fill in "XJOHRI")
  9. 13. Probability of default curve is observed to be moving to _____ (RGT = Right/ LFT=Left) due to climate change
  10. 15. Climate transition risk can affect ____ risk which could then transmit into insurance through general liability or “directors and officers” (D&O) policies.
  11. 16. According to COSO, the benefits of ERM is to eliminate all the risks (True/Nope)
  12. 20. ______ risk has a Mixed potential to cause systemic / financial stability risk