Target Operating Model Design for BankingFinal Exam

Final Exam — TOM Practitioner Qualification

Test your knowledge across all seven modules to earn your TOM Practitioner certificate.

TOM Practitioner Final Exam

You have completed all seven modules of the Target Operating Model Design for Banking course. From the fundamentals of operating model design through strategic alignment, business case development, process architecture, capability mapping, organisational design, governance frameworks, technology strategy, data architecture, implementation planning, migration management, and continuous improvement — you now have the comprehensive knowledge to design, document, and implement target operating models in financial services.

This final exam covers all seven modules. The questions span the full breadth of the course, testing both conceptual understanding and practical application to banking scenarios. You will encounter questions about TOM dimensions and design principles, strategic alignment and business case construction, process hierarchy and capability mapping, organisational design and governance, technology and data architecture, implementation planning and migration strategies, KPI frameworks, and benefits realisation.

Exam details:

30 questions covering all course modules
Pass mark: 70% (21 out of 30 correct)
Unlimited retakes — if you do not pass on your first attempt, review the relevant modules and try again
No time limit — take your time and consider each question carefully

Review your notes from each module if needed. Pay particular attention to the five TOM dimensions, process hierarchy levels, standardisation decision frameworks, organisational design principles, buy vs build criteria, migration strategies, and KPI categories.

Upon passing, you will be able to generate your TOM Practitioner certificate from Insight Centric — a credential that validates your ability to design and implement target operating models for the banking and financial services industry.

Yellow Belt Qualification Exam

30 questions — Pass mark: 70%

Q1.What is a Target Operating Model (TOM)?

A document that describes the bank's current IT systemsA structured description of how an organisation intends to operate in the future across people, process, technology, governance, and dataAn organisational chart showing reporting linesA project plan for a single technology migration

Q2.Which of the following is a common trigger for TOM redesign in banking?

A minor update to the office stationery supplierA merger or acquisition requiring integration of overlapping operationsA single employee changing teamsThe publication of a new industry newsletter

Q3.Why must the TOM be explicitly linked to corporate strategy?

Because regulators mandate a specific document formatTo ensure the operating model enables the bank's strategic objectives rather than merely optimising the current stateBecause the TOM replaces the corporate strategyTo allow the IT department to set strategic priorities

Q4.What is Net Present Value (NPV) in the context of a TOM business case?

The total programme budgetThe present value of all future benefits minus the present value of all costs, discounted at an appropriate rateThe number of staff involved in the programmeThe cost of the most expensive technology platform

Q5.In a capability maturity model, what characterises Level 3 (Defined)?

Processes do not existProcesses are ad hoc and dependent on individual knowledgeProcesses are standardised across the organisation, documented centrally, governed by defined ownership, and measured against KPIsProcesses are fully optimised with real-time AI-driven management

Q6.What does Level 0 (L0) in a process hierarchy represent?

Desktop procedures with step-by-step instructionsIndividual BPMN process mapsThe enterprise value chain — the highest-level view of the organisation's end-to-end capabilitiesSystem architecture documentation

Q7.An enterprise capability map describes:

The bank's financial performanceWhat the organisation does (its capabilities), independent of how it does it, who does it, or what systems support itThe number of employees in each departmentThe bank's marketing campaigns

Q8.A bank operates in 5 countries with 5 different settlement processes. The TOM design principle is 'single global process with local variants only where mandated by regulation.' What is the correct approach?

Keep all 5 processes unchangedDesign one standard global process, identify where local regulation genuinely requires deviation, and document each deviation with regulatory justificationAllow each country to design its own process independentlyEliminate the settlement function entirely

Q9.In value chain analysis, which activity would be classified as a 'support process' rather than a 'core process'?

Trade executionSecurities settlementHuman resources and recruitmentPayment processing

Q10.What does 'span of control' refer to in organisational design?

The bank's geographic presenceThe range of products offeredThe number of direct reports a manager supervisesThe total headcount of the organisation

Q11.In a RACI matrix, what is the critical rule about the 'A' (Accountable) designation?

There can be multiple A's for each activityThe A is optional and can be omittedThere must be exactly one A for each activity — a single person ultimately answerable for the outcomeThe A always refers to the most junior person involved

Q12.What is a key regulatory requirement when a bank offshores operations to a location outside its home jurisdiction?

There are no regulatory requirementsThe bank must notify the home regulator, ensure outsourcing agreements meet regulatory standards, and demonstrate it retains adequate control and oversightThe offshore location automatically falls under home jurisdiction regulationOffshoring eliminates all regulatory obligations

Q13.What is the primary advantage of a shared services model over a business-aligned model?

Shared services teams have deeper business-specific knowledgeEconomies of scale, process standardisation, talent concentration, and technology consolidation across business linesShared services are always located offshoreShared services eliminate the need for governance

Q14.What is the primary purpose of a technology landscape assessment?

To list all employees in the IT departmentTo create a complete inventory of all systems, their capabilities, costs, dependencies, and risks as a baseline for rationalisation decisionsTo select a new CTOTo determine internet bandwidth requirements

Q15.When is 'build' typically the appropriate choice in a buy vs build vs partner decision?

For all operational functions regardless of contextWhen the capability is strategically differentiating and no vendor product exists that meets the bank's specific requirementsWhen the bank wants to minimise development effortWhen speed to market is the only priority

Q16.What is a 'golden source' in data architecture?

The most expensive database in the bankA backup system used only for disaster recoveryThe single authoritative source for a specific data element that all downstream systems must consumeA historical archive of deleted records

Q17.What is the key benefit of an API-first integration architecture?

It eliminates the need for any databasesIt enables real-time, standardised, reusable integration between systems, replacing fragile batch file transfers and custom point-to-point connectionsIt automatically secures all dataIt removes the need for any system testing

Q18.A bank uses 7 reconciliation platforms. Why does the TOM consolidate them to one?

To increase the number of vendorsBecause one platform per function reduces licence costs, simplifies support, enables standardised processes, and improves data consistencyTo make reconciliation more difficultBecause regulators mandate a maximum of one reconciliation system

Q19.What does the 'crawl-walk-run' phasing approach mean for TOM implementation?

The programme starts at full speed from day oneFoundation and quick wins first (crawl), major structural changes next (walk), and full optimisation last (run)Three separate programmes running independentlyThe programme pauses for 6 months between each phase

Q20.What is 'parallel running' during a platform migration?

Running two unrelated programmes simultaneouslyOperating old and new platforms simultaneously, processing the same transactions on both, and comparing outputs to validate accuracy before decommissioning the old systemTesting the new platform without any live dataRunning the new platform at half capacity

Q21.What is the primary risk of a 'big bang' cutover strategy?

It takes too longIt is too cheapIf the new platform fails after cutover, there is no easy fallback to the old systemIt requires too few people

Q22.Why is regulatory engagement important during a TOM transformation?

To allow the regulator to manage the programmeProactive engagement ensures the regulator is aware of material changes, reduces the risk of supervisory intervention, and demonstrates responsible risk managementRegulators have no interest in operational changesEngagement is only required after the transformation is complete

Q23.A dependency map in implementation planning identifies:

The salary bands for programme team membersThe relationships between implementation activities — which must complete before others can begin and which can proceed in parallelThe bank's competitive position in the marketThe number of meeting rooms available for workshops

Q24.Why must KPI baselines be established before the TOM transformation begins?

KPIs are only used for marketing purposesWithout pre-transformation baselines, it is impossible to objectively demonstrate that the transformation delivered improvementBaselines are only needed for technology metricsKPIs cannot be measured before a transformation

Q25.What is 'benefits realisation tracking'?

A one-time calculation at programme endAn ongoing process of monitoring whether projected benefits are actually being achieved, diagnosing shortfalls, and triggering corrective actionsA report produced only for external auditorsThe process of calculating programme costs

Q26.A TOM business case projects EUR 30M annual savings. At the 12-month post-implementation review, actual savings are EUR 24M. What is the most appropriate response?

Declare the programme a failure and reverse all changesConduct variance analysis to understand the shortfall, identify corrective actions for recoverable benefits, and adjust projections for structural shortfallsIgnore the shortfall and report EUR 30M savingsTerminate the benefits tracking process

Q27.Which of the following is a leading indicator of TOM success rather than a lagging indicator?

Annual cost reduction achievedNumber of regulatory findings received last yearPercentage of staff trained and certified on new processesTotal operational losses for the previous quarter

Q28.What is the purpose of a post-implementation review (PIR)?

To assign blame for programme issuesTo formally assess whether objectives were achieved, benefits are being realised, lessons were learned, and residual actions remainTo restart the programme from scratchTo produce a press release about the programme

Q29.Why do some TOM implementations fail to deliver their intended benefits?

Because operating model frameworks are inherently flawedBecause factors such as insufficient change management, unrealistic assumptions, lack of benefit ownership, and failure to sustain changes after programme closure undermine benefit deliveryBecause all banking transformations are destined to failBecause regulators prevent banks from achieving efficiency improvements

Q30.A bank's TOM programme has completed implementation. The STP rate for settlement has improved from 71% to 89% against a target of 92%. Investigation reveals that most remaining manual interventions are caused by poor-quality client data. What should the bank do?

Accept the 89% rate as the final outcome and close the programmeLaunch a targeted initiative to address client data quality — such as SSI enrichment, client communication, and automated data validation — to close the remaining gapReverse the TOM changes and return to the old operating modelReduce the STP target to 89% to match actual performance

Certificate Locked

Complete all 7 modules and pass the final exam to earn your TOM Practitioner certificate.