NCRM EXAM WITH ACCURATE SOLUTIONS (A+)
Key Goal of NCUA exams - ANSWER Protect the share insurance fund while also
determining whether a credit union is in compliance with applicable laws and
regulations
Main Regulators for Risk Guidance - ANSWER NCUA, CFPB, FFIEC, FINCEN
CAMELS rating scale - ANSWER 1-5 with 1 being the best
What is the name of the system used to evaluate a credit union - ANSWER CAMELS
CAMELS rating - ANSWER Capital adequacy
Asset quality
Management
Earnings
Liquidity
Sensitivity to market risk
Which has a significant factor of the overall risk score - ANSWER Management
Total Analysis Process - ANSWER Collecting Data, reviewing data, Analyzing Data,
Researching Conclusions, Making Recommendations
Examiners derive High Risk areas from - ANSWER Previous exams, internal/external
audits, review of the call report, general downward trends
, New products and services will like be considered higher risk - ANSWER True
Three things each exam must include - ANSWER Reviewing accuracy of 5300 Call
Report, reviewing supervisory committee audit, reviewing compliance with BSA
Risk management program should be designed around - ANSWER Size, scope and
complexity of the organization
Risk Impact - ANSWER Cost or disruption experienced by the organization should the
risk occur
Risk impacts - ANSWER Direct loss of money, missed/lost opportunities, regulatory or
non compliance violations and clean up projects
risk assessment should identify - ANSWER Likelihood of occurrence, it's impact, the risk
score, the current exposure level
Two types of risk - ANSWER Inherent and residual
Inherent Risk - ANSWER Exist when there are no internal controls
Residual Risk - ANSWER Cannot completely be prevented
Risk management program foundations - ANSWER Policies, Processes, Personnel,
Control Systems
Seven categories of risk - ANSWER Credit, interest rate, liquidity, transaction,
compliance, strategic and reputation
Credit Risk - ANSWER the risk that borrowers might default on their loans
Key Goal of NCUA exams - ANSWER Protect the share insurance fund while also
determining whether a credit union is in compliance with applicable laws and
regulations
Main Regulators for Risk Guidance - ANSWER NCUA, CFPB, FFIEC, FINCEN
CAMELS rating scale - ANSWER 1-5 with 1 being the best
What is the name of the system used to evaluate a credit union - ANSWER CAMELS
CAMELS rating - ANSWER Capital adequacy
Asset quality
Management
Earnings
Liquidity
Sensitivity to market risk
Which has a significant factor of the overall risk score - ANSWER Management
Total Analysis Process - ANSWER Collecting Data, reviewing data, Analyzing Data,
Researching Conclusions, Making Recommendations
Examiners derive High Risk areas from - ANSWER Previous exams, internal/external
audits, review of the call report, general downward trends
, New products and services will like be considered higher risk - ANSWER True
Three things each exam must include - ANSWER Reviewing accuracy of 5300 Call
Report, reviewing supervisory committee audit, reviewing compliance with BSA
Risk management program should be designed around - ANSWER Size, scope and
complexity of the organization
Risk Impact - ANSWER Cost or disruption experienced by the organization should the
risk occur
Risk impacts - ANSWER Direct loss of money, missed/lost opportunities, regulatory or
non compliance violations and clean up projects
risk assessment should identify - ANSWER Likelihood of occurrence, it's impact, the risk
score, the current exposure level
Two types of risk - ANSWER Inherent and residual
Inherent Risk - ANSWER Exist when there are no internal controls
Residual Risk - ANSWER Cannot completely be prevented
Risk management program foundations - ANSWER Policies, Processes, Personnel,
Control Systems
Seven categories of risk - ANSWER Credit, interest rate, liquidity, transaction,
compliance, strategic and reputation
Credit Risk - ANSWER the risk that borrowers might default on their loans
