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GARP ICBRR Exam Overview:
| Certification Vendor: | GARP (Global Association of Risk Professionals) |
|---|---|
| Exam Name: | GARP International Certificate in Banking Risk and Regulation (ICBRR / FRR) |
| Exam Number: | ICBRR (replaced by 2016-FRR) |
| Passing Score: | 67.5% (54/80) |
| Exam Format: | Computer-based test (CBT), Online proctored, Multiple-choice questions |
| Related Certifications: | FFR (Foundations of Financial Risk) FRM (Financial Risk Manager) |
| Exam Duration: | 120–175 |
| Real Exam Qty: | 80–120 |
| Available Languages: | English, Chinese |
| Certificate Validity Period: | Lifetime |
| Exam Price: | $350–$500 USD |
| Recommended Training: | Official FRR Study Materials |
| Exam Registration: | GARP Official Registration Pearson VUE Scheduling |
| Sample Questions: | GARP ICBRR Sample Questions |
| Exam Way: | Onsite at Pearson VUE centers or online proctored via OnVUE |
| Pre Condition: | No formal prerequisites; open to all finance and banking professionals |
| Official Syllabus URL: | https://www.garp.org/courses/financial-risk-and-regulation |
GARP ICBRR Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Credit Risk Management | 25% | - Credit risk measurement - Credit risk mitigation - Capital requirements for credit risk - Counterparty credit risk |
| Operational Risk Management | 15% | - Risk measurement & control - Operational risk identification - Business continuity - AML & KYC requirements |
| Banking Industry & Regulatory Framework | 15% | - Risk-based supervision - Banking business models - Basel Accords overview |
| Market Risk Management | 20% | - Interest rate risk - VaR and stress testing - Equity & commodity risk - Foreign exchange risk |
| Liquidity & ALM | 15% | - Liquidity coverage ratios - Liquidity risk principles - Asset & Liability Management - Funding strategies |
| Regulatory Capital & Governance | 10% | - ICAAP & SREP - Capital adequacy framework - Risk governance & internal controls |
GARP International Certificate in Banking Risk and Regulation (ICBRR) Sample Questions:
A bank has a large number of auto loans and would prefer to sell them to raise cash for more funding. However, selling individual auto loans is difficult. What could the bank do?
- A. Obtain a stronger credit rating so that the bank could borrow at a cheaper rate.
- B. Package the loans into a securitized vehicle and sell the low risk portion of the portfolio.
- C. Merge with another bank.
- D. Set up a marketing team to sell individual loans to investors.
Correct Answer: B 🗳️
Which of the following are the most common methods to increase liquidity in stressed conditions?
I. Selling or securitizing assets.
II. Obtaining additional credit lines.
III.
Securing a better credit rating.
- A. I, II
- B. II, III
- C. I, II, III
- D. I
Correct Answer: A 🗳️
AlphaBank's management is evaluating how changes in its business environment could materially impact risk categories. As a result, bank's management decides to implement the structure, which facilitates the discussion in an integrative context, spanning market, credit, and operational risk factors, and encourages transparency and communication between risk disciplines. Which one of the following four approaches should the management choose to achieve this strategic goal?
- A. Regulatory risk management approach
- B. Scenario-based risk management approach
- C. Taxonomy-based risk management approach
- D. Enterprise risk management approach
Correct Answer: D 🗳️
Gamma Bank provides a $100,000 loan to Big Bath retail stores at 5% interest rate (paid annually). The loan also has an annual expected default rate of 2%, and loss given default at 50%. In this case, what will the bank's expected loss be? What is the expected loss of this loan?
- A. $300
- B. $1,050
- C. $750
- D. $550
Correct Answer: B 🗳️
Which one of the following four statements correctly defines a typical carry trade?
- A. A bank borrows funds in a high-interest currency and places the funds in a long-term low volatility investment vehicle.
- B. A bank borrows funds in a low-interest currency and places the funds on deposit in a high-interest currency.
- C. A bank borrows funds in a high-interest currency and invests the funds into high-yield emerging market debt.
- D. A bank borrows funds in a low-interest currency, accumulates reserves, and lends in another low-interest currency.
Correct Answer: B 🗳️
By Nancy
