Final Questionnaire | Directors Academy

How does the Compliance Department fulfill its tasks?

It´s closely linked to the internal audit department.

How does the Compliance Department fulfill its tasks?

It monitors and supports the other departments in complying with regulations and laws.

It's independent.

Correct! Wrong!

BaFin requires an SREP surcharge of 0.25-0.5% additional equity because the minimum requirements for corporate governance are not met. What can you do in the supervisory board to prevent or reverse an SREP surcharge?

I'll leave the reaction to the management board. It's up to them!

Nothing at all. BaFin can decide whatever it wants.

I demand that my Chairman of the Supervisory Board contact BaFin and clarify the reasons for the SREP surcharge.

I suggest we take legal action against BaFin because the SREP surcharge is a chicanery.

Correct! Wrong!

Which are the main contents of the Institutsvergütungsverordnung (Institute Remuneration Ordinance)?

Only the remuneration of executive board members

The remuneration of employees

The remuneration of executive board members and employees

Only the remuneration of executive and non-executive/supervisory board members

Correct! Wrong!

What are sustainability risks?

Please select 3 correct answers

Risk of violating corporate governance standards

Risk of causing ecological colateral damages through business operations

Risk of violating international humanitary law minimum standards through business operations

Risk of financial destabilization through external impact

Correct! Wrong!

How do the special accounting rules for financial institutions come about?

Please select 3 correct answers

From the special transactions of credit institutions.

From strong regulation.

From EU enlargement.

From the special economic significance of the banks.

Correct! Wrong!

At what level of shareholding in a credit institution is a company subject to control by BaFin?

At any level of shareholding above 0 %

From 10 % upwards

From 30 % upwards

From 20 % upwards

Correct! Wrong!

In which banks do employees have the right to elect one third of the members of the supervisory board?

In banks with more than 2000 employees on a regular basis

Employee co-determination is relevant for mining and steel industry and doesn't affect banks

In banks with more than 1000 employees on a regular basis

In banks with 500 to 2000 employees on a regular basis

Correct! Wrong!

How does the Supervisory Board behave in a compliant manner?

Each member is reviewed once a year by the Compliance Department.

By intervening in the business in case of possibly risky or non-compliant business decisions.

Only the Chairman of the Supervisory Board is informed about compliance violations.

Each member should view the Compliance Report and form his or her own opinion.

Correct! Wrong!

What is evaluated in the Supervisory Review and Evaluation Process (SREP)?

Please select 4 correct answers

Business model

Risk culture as part of the corporate culture

Cashflow Analysis

Personal relations with BaFin

Liquidity and refinancing risk

Governance

Correct! Wrong!

A derivative is a financial instrument...

Please select 2 correct answers

which will be fulfilled only in the future.

A derivative is a financial instrument whose fair value generally reacts to changes in the value of a market-related reference value accounting (underlying).

where the acquisition costs are not incurred or are incurred only to a very limited extent.

which is generally recognised in the balance sheet under the German Trading Act.

Correct! Wrong!

Which of these committees are mandatory in the supervisory body of an institute of "significant importance"?

Please select 3 correct answers

Nominations Committee

Personnel Committee

Risk Committee

Remuneration Control Committee

Correct! Wrong!

How does the supervisory board optimally check the functionality of the internal control system (ICS)?

Checking the detail in every process

Reading the compliance report

Reading the financial reports or balances

Checking the protocol of the internal audit

Correct! Wrong!

What does compliance at credit institutions involve?

Please select 3 correct answers

Compliance is essentially limited to traditional issues such as the prevention of money laundering, terrorist financing and other criminal activities.

Has an important function in the new product process (NPP) and in the settlement of transactions.

Compliance with all laws, regulations, guidelines, contractual obligations and voluntary commitments.

Also refers to the requirements of the regulatory authorities.

Correct! Wrong!

What are the main differences between a supervisory board and an executive board in the german dualistic management system?

Please select 2 correct answers

Both boards have full power of legal representation in the name of the company.

The executive board (or management board) is the legal representant of the company.

The supervisory board hires and supervises the management without fulfilling executive tasks.

The supervisory board fulfills delegated executive tasks.

Correct! Wrong!

What applies to the purchase of insurance against the personal liability of supervisory board members?

Please select 3 correct answers

The conclusion of such insurance by the Company is not permitted.

Such insurance often does not cover cases of gross negligence.

With a D&O insurance policy I no longer have to worry about my liability.

Normally a deductible is agreed.

Correct! Wrong!

What is evaluated in the Supervisory Review and Evaluation Process (SREP)?

Please select 4 correct answers

Liquidity and refinancing risks

Risk culture as a part of the corporate culture

Governance

Business Model

Cashflow Analysis

Personal relation with BaFin

Correct! Wrong!

What is subject of the Institutsvergütungsverordnung ( Institute Remuneration Ordinance)?

Please select 3 correct answers

Alignment with the strategy of the institute

Appropriateness of remuneration and remuneration systems

Ratio of remuneration for employees and executive board members

Ratio of variable remuneration to fixed remuneration

Correct! Wrong!

Which requirements must a member of the supervisory board of a CRR-institute of "significant importance" meet according to Sec. 25d KWG?

Please select 3 correct answers

He may not be director of another company.

He must devote sufficient time to fulfill his duties.

He must have the necessary expertise to assess and monitor the companies' business and carry out the supervisory function in cooperation with the other supervisory board members.

He may not be member of the supervisory body of more than four companies unless he is otherwise a director.

Correct! Wrong!

Who controls the so-called "Institutions of significant importance"?

Basel Committee on Banking Supervision

Financial Stability Board (FSB)

Federal Financial Supervisory Authority (BaFin)

European Central Bank (ECB)

Correct! Wrong!