APRP ACTUAL EXAM Q&A 2026 STUDY GUIDE
GRADED A+
◉ Systemic Risk . Answer: Occurs when a funds transfer system
participant is unable to settle its commitments causing other
participants to fail. Financial institutions must be aware of all rules,
regulations and laws governing the payments industry.
◉ Cross-Channel Risk . Answer: Occurs when the movement of
fraudulent or illegal payment transactions from one
payments channel to another (e.g., check payments to ACH) is met with
inconsistent risk management practices and lack of
information sharing across payment channels about fraud.
◉ Compliance Risk . Answer: Occurs when a 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.
◉ ACH Network . Answer: This network is a processing and delivery
system that provides for the distribution and settlement of electronic
credits and debits among financial institutions
,◉ Originator . Answer: A natural person or an organization that has
authorized an ODFI to transmit, for the account of that person, a credit
entry, debit entry, or non-monetary entry to the Receiver's account at the
RDFI.
◉ Number of risk types . Answer: 14
◉ Risk . Answer: The potential that expected or unanticipated events
may have an adverse effect on a financial institution's earnings, capital,
or reputation.
◉ Two greatest risks to wire payments . Answer: Credit risk and
Operational risk.
◉ Risk Mitigation . Answer: The process of reducing risks through the
introduction of specific controls and risk transfer.
◉ Operating Circular 5 . Answer: Governs electronic access to certain
services and applications provided by a Federal Reserve Bank.
◉ Regulation P . Answer: Regulation that requires certain financial
institutions to provide notice to customers about its privacy policies and
practices of nonpublic personal information about consumers by
,financial institutions for which the Bureau (CFPB) has primary
supervisory authority.
◉ UCC Article 3 . Answer: State law governing negotiable
instruments.
◉ Office of Foreign Assets Control (OFAC) . Answer: Office within
the U.S. Department of the Treasury that administers and enforces
economic and trade sanctions based on US Foreign policy and national
security goals.
◉ PCI Security Standards Council . Answer: The governing body,
representing key participants of the payment card industry, which
establishes and maintains security standards for payment cards.
◉ Regulation D . Answer: Imposes reserve requirements on certain
deposits and other liabilities of depository institutions solely for the
purpose of implementing monetary policy. It specifies how depository
institutions must classify different types of deposit accounts for reserve
requirement purposes.
◉ Regulation J . Answer: Regulation covering Federal Reserve Bank
processing of checks and wires.
, ◉ Regulation Z . Answer: Truth in Lending regulation to promote
informed use of consumer credit by requiring disclosures about terms
and cost.
◉ 31 CFR 208 . Answer: Publishes the final rule to implement Debt
Collection Improvement Act (DCIA) of 1996.
◉ 31 CFR 235 . Answer: Governs the issuance of settlement checks for
forged checks drawn on designated depositaries.
◉ Detective Controls . Answer: Controls designed to identify
operational weaknesses and effect corrective actions.
◉ Goal of the BCP . Answer: Minimize financial losses to the
institution, Serve customers and financial markets with minimal
disruptions, and Mitigate the negative effects of disruptions on business
operations.
◉ Internal Controls . Answer: The policies and procedures that
organizations establish to reduce risks and ensure they meet operating,
reporting, and compliance objectives.
◉ 5 components an internal control program should address . Answer:
Control environments, Risk assessments, Control activities, Information
& communication, and Monitoring.
GRADED A+
◉ Systemic Risk . Answer: Occurs when a funds transfer system
participant is unable to settle its commitments causing other
participants to fail. Financial institutions must be aware of all rules,
regulations and laws governing the payments industry.
◉ Cross-Channel Risk . Answer: Occurs when the movement of
fraudulent or illegal payment transactions from one
payments channel to another (e.g., check payments to ACH) is met with
inconsistent risk management practices and lack of
information sharing across payment channels about fraud.
◉ Compliance Risk . Answer: Occurs when a 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.
◉ ACH Network . Answer: This network is a processing and delivery
system that provides for the distribution and settlement of electronic
credits and debits among financial institutions
,◉ Originator . Answer: A natural person or an organization that has
authorized an ODFI to transmit, for the account of that person, a credit
entry, debit entry, or non-monetary entry to the Receiver's account at the
RDFI.
◉ Number of risk types . Answer: 14
◉ Risk . Answer: The potential that expected or unanticipated events
may have an adverse effect on a financial institution's earnings, capital,
or reputation.
◉ Two greatest risks to wire payments . Answer: Credit risk and
Operational risk.
◉ Risk Mitigation . Answer: The process of reducing risks through the
introduction of specific controls and risk transfer.
◉ Operating Circular 5 . Answer: Governs electronic access to certain
services and applications provided by a Federal Reserve Bank.
◉ Regulation P . Answer: Regulation that requires certain financial
institutions to provide notice to customers about its privacy policies and
practices of nonpublic personal information about consumers by
,financial institutions for which the Bureau (CFPB) has primary
supervisory authority.
◉ UCC Article 3 . Answer: State law governing negotiable
instruments.
◉ Office of Foreign Assets Control (OFAC) . Answer: Office within
the U.S. Department of the Treasury that administers and enforces
economic and trade sanctions based on US Foreign policy and national
security goals.
◉ PCI Security Standards Council . Answer: The governing body,
representing key participants of the payment card industry, which
establishes and maintains security standards for payment cards.
◉ Regulation D . Answer: Imposes reserve requirements on certain
deposits and other liabilities of depository institutions solely for the
purpose of implementing monetary policy. It specifies how depository
institutions must classify different types of deposit accounts for reserve
requirement purposes.
◉ Regulation J . Answer: Regulation covering Federal Reserve Bank
processing of checks and wires.
, ◉ Regulation Z . Answer: Truth in Lending regulation to promote
informed use of consumer credit by requiring disclosures about terms
and cost.
◉ 31 CFR 208 . Answer: Publishes the final rule to implement Debt
Collection Improvement Act (DCIA) of 1996.
◉ 31 CFR 235 . Answer: Governs the issuance of settlement checks for
forged checks drawn on designated depositaries.
◉ Detective Controls . Answer: Controls designed to identify
operational weaknesses and effect corrective actions.
◉ Goal of the BCP . Answer: Minimize financial losses to the
institution, Serve customers and financial markets with minimal
disruptions, and Mitigate the negative effects of disruptions on business
operations.
◉ Internal Controls . Answer: The policies and procedures that
organizations establish to reduce risks and ensure they meet operating,
reporting, and compliance objectives.
◉ 5 components an internal control program should address . Answer:
Control environments, Risk assessments, Control activities, Information
& communication, and Monitoring.
