American Bankers Association Exam CRCM Topic 1 Question 103 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 103
Topic #: 1

[All CRCM Questions]

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

AAppropriate recognition and financial reporting of income, expenses, assets, and liabilities

BAppropriate treatment of losses associated with these products

CAssessment of the adequacy of its internal controls and risk mitigation activities

DBefore entering into a contract, the bank must obtain the customer's written affirmative election to enter into the contract and written acknowledgement of the receipt of the disclosures

Show Suggested Answer

Suggested Answer: B

by Dierdre at Nov 13, 2024, 09:24 AM

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Jacquline

3 days ago

I agree, D is the correct answer. Banks need to prioritize customer protection and transparency when offering these products.

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Option D seems the most comprehensive and addresses the key aspects of risk management and control processes that banks need to have in place. Obtaining the customer's written consent and acknowledgement of disclosures is crucial.

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Tora

16 days ago

I believe option D is also essential to ensure customers are fully informed before entering into contracts.

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Cheryl

22 days ago

I agree with you, Lucille. Option C is crucial for managing risks effectively.

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Lucille

25 days ago

I think option C is important for ensuring internal controls are adequate.

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American Bankers Association Exam CRCM Topic 1 Question 103 Discussion

Contribute your Thoughts:

Jacquline

King

Tora

Cheryl

Lucille