APRP VOCAB 2023-2024 EXPLAINED COMPLETE 200 VOCAB AND DETAILED EXPLANATIONS |AGRADE

APRP VOCAB 2023-2024 EXPLAINED COMPLETE 200 VOCAB

AND DETAILED EXPLANATIONS |AGRADE

Basel III Regulatory Capital - ANSWER- A comprehensive set of

reform measures, developed by the Basel Committee on Banking

Supervision (BCBS), to strengthen the regulation, supervision, and risk

management of the banking sector, including both liquidity and capital

reforms.

Business Continuity Planning (BCP) - ANSWER- Develop, implement,

and test appropriate disaster recovery, in order to maintain acceptable

retail payment-related customer service levels

Business Impact Analysis (BIA) - ANSWER- A flow analysis that

involves an assessment and prioritization of those business functions and

processes that must be recovered. should also consider the impact of

legal and regulatory requirements. should also estimate the maximum

allowable downtime for critical business functions and processes and the

acceptable level of losses (data, operations, financial, reputation, and

market share) associated with this estimated downtime

Biometrics - ANSWER- Methods include voice scanning and iris and

retinal imagingfinger scan linked to his or her personal identification

information.

Capital adequacy - ANSWER- Refers to the amount of capital a

financial institution has to hold as required by its regulator

Card Products - ANSWER- Credit cards, Debit cards and Prepaid cards

CDD - ANSWER- Customer Due Diligence

Consumer Financial Protection Bureau (CFPB) - ANSWER- Rulemaking authority and, with respect to entities within its jurisdiction,

enforcement authority to prevent unfair, deceptive, or abusive acts or

practices in connection with any transaction with a consumer for a

consumer financial product or service, or the offering of a consumer

financial product or service

Challenge Questions - ANSWER- Used as a backup in the event that

primary logon authentication technique becomes inoperable or presents

an unexpected characteristic. Can include "out-of-wallet' questions,

which are questions that a user only knows and a fraudster cannot obtain

just with stolen identity.

Change Control Policy - ANSWER- Addresses potential changes to the

operating environment

Charge-backs - ANSWER- A demand by a credit-card provider for a

retailer to make good the loss on a fraudulent or disputed transaction

Check/Remote Deposit Capture (RDC) Policy - ANSWER- Sets forth

policies and procedures adopted by the FI in regards to risks associated

with its offering of RDC services to its accountholders

CIP - ANSWER- Customer Identification Program

Closed Loop Network - ANSWER- Provides payment services directly

to merchants and cardholders by the owner of the network without

involving financial institutions as intermediaries. American Express and

Discover are two examples.

Compliance Risk - ANSWER- 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

Compliance risk management - ANSWER- Be aware of all payment

system rules, policies, regulations and applicable U.S. and state law

Contactless cards - ANSWER- Have an embedded computer chip with

financial and personal information used for payment transactions, and

they employ RFID technology for payment transmission. They include a

microcontroller (or equivalent intelligence) and internal memory and

have the ability to secure, store, and provide access to data on the card.

Control Activities - ANSWER- Include the policies & procedures

institutions establish to manage risks and ensure predefined control

objectives are met. Should cover all key areas of an organization and

address items such as organizational structures, committee compositions

and authority levels, officer approval levels, access controls (physical

and electronic), audit programs, monitoring procedures, remedial

actions, and reporting mechanisms.

Control Environment - ANSWER- Begins with a bank's BOD & senior

management, who are responsible for developing effective internal

control systems and ensuring all personnel understand and respect the

importance of internal controls. Control systems should be designed to

provide reasonable assurance that appropriately implemented internal

controls will prevent or detect: Materially inaccurate, incomplete, or

unauthorized transactions; Deficiencies in the safeguarding of assets;

Unreliable financial and regulatory reporting; Deviations from laws,

regulations, and internal policies

COSO - ANSWER- Committee Of Sponsoring Organizations Of

Treadway Commission

Credit Analysis Techniques - ANSWER- "There are several techniques

that can be used when performing credit analysis of a business or

organization, including: Credit Policy; Risk Rating; Ongoing Monitoring

and Review; Cross-Channel; Prohibited/Restricted Businesses"

Credit Policy - ANSWER- Establishing this policy is just one part of the

credit analysis techniques used by financial institutions