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100+ Free HKIB ECF-Operational Risk Core Practice Questions

Pass your HKIB Enhanced Competency Framework on Operational Risk Management (Core Level) Examination exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: HKIB ECF-Operational Risk Core Exam

70%

Core Level pass mark for each ECF-ORM module examination

HKIB ORM-P-002 Programme Handbook (4 March 2026)

50 MCQs

Modules 1 and 2 examination length per module

HKIB ORM-P-002 Programme Handbook

80 MCQs

Module 3 examination length

HKIB ORM-P-002 Programme Handbook

HKD600

Modules 1–2 examination fee per module

HKIB ORM-P-002 Programme Handbook

HKD1,300

Module 3 examination fee

HKIB ORM-P-002 Programme Handbook

QF Level 4

Qualifications Framework level for Associate Operational Risk Management Professional (AORP)

HKIB ORM-P-002 (QR Registration)

40 credits

Total Core Level programme credits across Modules 1–3

HKIB ORM-P-002 Programme Handbook

100

Free original practice questions in this bank

OpenExamPrep

HKIB ECF-ORM Core Level exams are paper-based MCQs with a 70% pass mark: Modules 1–2 have 50 questions in 1.5 hours (HKD600); Module 3 have 80 questions in 2.5 hours (HKD1,300). Completing all three modules supports the AORP (QF Level 4) pathway. This free 100-question bank covers Modules 1–3 against the March 2026 ORM-P-002 handbook.

Sample HKIB ECF-Operational Risk Core Practice Questions

Try these sample questions to test your HKIB ECF-Operational Risk Core exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In Hong Kong banking practice aligned with HKMA expectations, which statement best describes the compliance function within the three lines of defence model?
A.It sits above the three lines and replaces board oversight
B.It is the first line and owns day-to-day business risk-taking decisions
C.It is part of the second line, providing independent oversight of compliance risk
D.It is the third line and provides assurance equivalent to internal audit
Explanation: Under the three lines of defence model used in banking (including HKMA SPM IC-1 concepts), the compliance function is a second-line control function. It monitors and challenges first-line risk ownership without replacing business accountability or internal audit assurance.
2Which approach to normative ethics holds that moral principles apply universally, regardless of culture or situation?
A.Utilitarian consequentialism only
B.Agency theory
C.Ethical relativism
D.Ethical absolutism
Explanation: Absolutism treats core moral rules as universal. Relativism treats ethics as culture- or situation-dependent. Agency theory and utilitarianism address other frameworks, not the absolutism/relativism contrast in Module 1.
3A bank’s code of conduct is primarily intended to:
A.Serve mainly as a public-relations statement with no staff behavioural expectations
B.Replace all external banking laws with internal preferences
C.Set expected standards of ethical behaviour and professional conduct for staff
D.Guarantee that no regulatory breach can ever occur
Explanation: A code of conduct translates ethics and regulatory expectations into staff standards, conflicts handling, and escalation norms. It complements law and regulation; it does not replace them or eliminate all breach risk.
4Corporate social responsibility (CSR) in banking most closely refers to:
A.Outsourcing all compliance work to consultants
B.Avoiding disclosure of any ESG information
C.Maximising short-term trading profits without regard to stakeholders
D.Integrating social and environmental responsibilities into how the bank operates and lends
Explanation: CSR concerns how corporations account for impacts on society and the environment, including ESG themes covered in Module 1 (Equator Principles, green financing, sustainability reporting).
5The Equator Principles are primarily associated with:
A.Licensing insurance intermediaries under the Insurance Ordinance
B.Setting Basel capital ratios for trading books
C.Environmental and social risk management standards for project finance
D.Determining HKMA CAMEL ratings
Explanation: The Equator Principles provide a risk-management framework for identifying and managing environmental and social risks in project financing — a Module 1 ESG/project finance topic.
6Reputational risk for a bank is best described as the risk of:
A.Failure of a single ATM hardware component with no customer impact
B.An increase in statutory capital ratios that improves resilience
C.Loss arising solely from foreign-exchange rate movements
D.Damage to public trust or franchise value from adverse perception of the bank’s actions or associations
Explanation: Reputation risk is the risk that negative perception — from misconduct, incidents, or associations — harms confidence, franchise value and business. Module 1 links ethics, bank runs and reputational drivers.
7Under a typical enterprise risk management process, risk identification is followed most logically by:
A.Deletion of risks that are inconvenient for business targets
B.Immediate public disclosure of every identified risk to the media
C.Measurement, analysis and evaluation before deciding treatment and monitoring
D.Automatic transfer of all risks to internal audit
Explanation: Standard risk-management process steps include identification, measurement/analysis/evaluation, treatment/mitigation, and monitoring/reporting (aligned with ISO 31000 concepts referenced in the syllabus).
8Which HKMA supervisory policy manual module is commonly referenced for the risk management framework and three lines of defence expectations for authorised institutions?
A.GS-1 Climate Risk Management, which replaces IC-1 entirely
B.SA-1 Risk-based Supervisory Approach, which focuses on supervisory intensity rather than the AI's internal three-lines framework
C.OR-1 Operational Risk Management, which addresses operational risk rather than the overall risk-management framework
D.IC-1 Risk Management Framework
Explanation: HKMA SPM IC-1 Risk Management Framework sets expectations for risk governance including three-lines concepts. OR-1 (operational risk), GS-1 (climate) and SA-1 (risk-based supervision) address other topics.
9Which Hong Kong regulator is the lead prudential supervisor of authorised institutions under the Banking Ordinance?
A.Mandatory Provident Fund Schemes Authority (MPFA)
B.Securities and Futures Commission (SFC)
C.Hong Kong Monetary Authority (HKMA)
D.Insurance Authority (IA)
Explanation: The HKMA is Hong Kong’s banking regulator and lead supervisor of AIs under the Banking Ordinance. SFC, IA and MPFA regulate securities, insurance and MPF respectively, though banks may also interact with them for non-banking activities.
10Know Your Customer (KYC) / customer due diligence requirements are primarily designed to:
A.Eliminate the need for ongoing transaction monitoring
B.Replace fitness and properness assessments for directors
C.Increase the number of anonymous accounts a bank may open
D.Help the bank understand customer identity, risk profile and purpose of the relationship
Explanation: KYC/CDD identify and verify customers and understand relationship purpose and risk — foundational for AML/CFT and conduct protection topics in Module 1’s regulatory requirements overview.

About the HKIB ECF-Operational Risk Core Exam

The HKIB ECF on Operational Risk Management Core Level is the QF Level 4 pathway for entry- and junior-level operational risk practitioners in Hong Kong authorised institutions. Candidates complete three modules — Ethics and Corporate Governance in the Banking Industry (10 credits), Regulatory Framework and Compliance in the Banking Industry (10 credits), and Fundamentals of Operational Risk Management and Risk Governance (20 credits) — totalling 40 credits. Each module is assessed by a paper-based multiple-choice examination (50 MCQs / 1.5 hours for Modules 1–2; 80 MCQs / 2.5 hours for Module 3) with a 70% pass mark. Successful completion supports the Advanced Certificate for ECF on Operational Risk Management and the Associate Operational Risk Management Professional (AORP) qualification pathway.

Assessment

Per-module paper-based multiple-choice papers in English. Modules 1–2: 50 MCQs / 1.5 hours each. Module 3: 80 MCQs / 2.5 hours. Advanced Certificate for ECF on Operational Risk Management requires completion of training and a pass in all three modules.

Time Limit

Modules 1–2: 1.5 hours each; Module 3: 2.5 hours.

Passing Score

70% per Core Level module.

Exam Fee

HKD600 (Modules 1–2) / HKD1,300 (Module 3) per examination; HKIB student members receive 50% off examination fees. (Hong Kong Institute of Bankers (HKIB))

HKIB ECF-Operational Risk Core Exam Content Outline

30%

Module 1: Ethics and Corporate Governance

Business ethics and codes of conduct; CSR/ESG and reputation risk; risk management frameworks and three lines of defence (IC-1 / ISO 31000); Hong Kong regulators overview; bank corporate governance and agency issues; remuneration and CE/director/manager appointments; internal control and the compliance function.

30%

Module 2: Regulatory Framework and Compliance

Hong Kong financial regulatory model (HKMA, SFC, IA, MPFA); risk-based supervision and CAMEL; bank culture reform and Code of Banking Practice; major ordinances and privacy; FATCA, CRS/AEOI and GDPR; licensing for AIs, RIs, insurance agencies and MPF intermediaries; MIC regime; operational risk incident management; e-banking and new-product compliance challenges.

40%

Module 3: Fundamentals of Operational Risk Management and Risk Governance

Operational risk management framework (ORMF) objectives, governance structures, three lines of defense, operational risk appetite, identification and assessment (RCSA, key risk indicators, loss data collection), risk control and mitigation, risk monitoring and reporting, business resiliency, and second-line review.

How to Pass the HKIB ECF-Operational Risk Core Exam

What You Need to Know

  • Passing score: 70% per Core Level module.
  • Assessment: Per-module paper-based multiple-choice papers in English. Modules 1–2: 50 MCQs / 1.5 hours each. Module 3: 80 MCQs / 2.5 hours. Advanced Certificate for ECF on Operational Risk Management requires completion of training and a pass in all three modules.
  • Time limit: Modules 1–2: 1.5 hours each; Module 3: 2.5 hours.
  • Exam fee: HKD600 (Modules 1–2) / HKD1,300 (Module 3) per examination; HKIB student members receive 50% off examination fees.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

HKIB ECF-Operational Risk Core Study Tips from Top Performers

1Map every topic to the three modules: ethics/governance (M1), Hong Kong regulatory architecture and compliance (M2), and operational risk management frameworks, RCSAs, KRIs, and loss data (M3).
2Master the three lines of defence and HKMA SPM references (especially IC-1, CG-1, CG-3, CG-5, CG-6, and OR-1/OR-2) because they are central to operational risk governance.
3Drill the operational risk management cycle: identification → assessment/measurement → monitoring/reporting → control/mitigation.
4Be clear on the roles of the Second Line (Operational Risk Management Function) versus the First Line (Business Units) and Third Line (Internal Audit).
5Study the differences between qualitative tools like RCSA (Risk and Control Self-Assessment) and quantitative tools like Loss Data Collection and Key Risk Indicators (KRIs).
6Understand business continuity management (BCM), disaster recovery, and operational resilience concepts in the context of HKMA SPM TM-G-2.
7Track CPD requirements: at least 12 CPD hours annually, of which 6 should be on compliance, legal, risk management, or ethics.

Frequently Asked Questions

What is the pass mark for HKIB ECF-ORM Core Level examinations?

The Core Level pass mark is 70% for each module. HKIB also reports Pass with Credit (80–90%) and Pass with Distinction (above 90%) grade bands in the ORM-P-002 programme handbook.

How many questions are on each Core Level module exam?

Modules 1 and 2 each have 50 multiple-choice questions in 1.5 hours. Module 3 has 80 multiple-choice questions in 2.5 hours. All papers are set in English.

How much do the Core Level examinations cost?

Per the ORM-P-002 handbook (last updated 4 March 2026), examination fees are HKD600 for each of Modules 1 and 2 and HKD1,300 for Module 3. HKIB student members receive a 50% examination fee discount. Training fees are HKD4,400 per module.

What qualification does Core Level completion support?

Candidates who complete Modules 1–3 training and obtain a pass in each examination receive the Advanced Certificate for ECF on Operational Risk Management. The Associate Operational Risk Management Professional (AORP) professional qualification is recognised under the Hong Kong Qualifications Framework at Level 4, subject to HKIB certification requirements.

Can I sit the examination without completing training?

No. HKIB requires candidates to enrol and complete the training of the relevant module before attending that module’s examination.

Are Modules 1 and 2 shared with the ECF on Compliance stream?

Yes. Module 1 and Module 2 are identical for ECF on Operational Risk Management and ECF on Compliance. A learner who has completed Module 1 and/or Module 2 under either stream is not required to repeat the same module(s) under the other stream.

Are these official HKIB examination questions?

No. These are original OpenExamPrep practice questions modelled on the ECF-ORM Core Level syllabus in the official programme handbook.