In your own understanding, what is risk in banking, and can you give an example of how a teller might encounter operational risk?
RoleCustomer Service Representative
DifficultyEasy
TopicTechnical
Asked at
Why This Is Asked
EastWest Bank explicitly tests candidates on risk awareness, as tellers are the first line of defense against errors and fraud in daily operations.
General Approach
Define risk simply as the chance of loss or error. Give a concrete example of operational risk in teller duties, and explain how proper procedures minimize that risk.
General Answer
In banking, risk generally means the possibility of a financial loss or negative outcome from uncertainty in transactions, decisions, or events; common categories include credit risk, market risk, and operational risk. Operational risk specifically covers losses caused by failed or inadequate internal processes, human error, system breakdowns, or external events, as opposed to losses from lending decisions or market price movements. A teller could encounter operational risk by miscounting cash, posting a deposit or withdrawal to the wrong account, or skipping a required verification step; these errors are typically controlled through dual sign-offs, transaction limits, mandatory ID checks, and end-of-day cash reconciliation.
PH Interview Gotcha
Avoid saying "Wala naman pong risk basta magtiwala lang tayo." That dismisses controls. Better: "Risk in banking means the possibility of loss from human error, fraud, or system failure. As a teller, I can mitigate operational risk by following dual-control procedures, verifying all transactions, and being alert to red flags."
Sample STAR Answer▾
S
Situation
During my OJT at a rural bank, I was assigned to assist the tellers and was expected to learn about internal controls and risk mitigation.
T
Task
I had to apply basic risk management principles to everyday tasks like cash handling and customer identity verification.
A
Action
I learned that operational risk includes errors, fraud, or system failures. For example, I always verified signatures against the specimen card before processing withdrawals, counted cash twice, and never shared my password. When a co-intern asked to use my terminal for convenience, I politely declined and informed the supervisor to maintain dual control.
R
Result
My strict adherence prevented a potential unauthorized access incident, and the branch manager commended my vigilance during our team meeting.
Key Takeaway
Frontline staff are the first defense against operational risk through consistent compliance.
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