Preview Questions Risk Manager | Role Specific Skill

Question 1: How can technology help in identifying operational risks in a bank?

Which action should you take?

Choose only one option

By reducing manual labor and increasing efficiency

By enhancing customer experience

By automating risk detection and providing real-time data analytics

By lowering overall operating costs

Question 2: Which of the following is a critical element of a financial institution's compliance strategy under the MiFID II (Markets in Financial Instruments Directive)?

Which action should you take?

Choose only one option

Increasing leverage on riskier financial instruments

Minimizing client data protection measures

Transparency in the pricing of financial products

Providing unrestricted access to market-moving information

Question 3: Under Basel III, which of the following ratios is designed to improve financial institution stability by ensuring banks maintain adequate liquid assets?

Which action should you take?

Choose only one option

Net Stable Funding Ratio (NSFR)

Tier 1 Capital Ratio

Leverage Ratio

Liquidity Coverage Ratio (LCR)

Question 4: Which of the following methods is used in strategic planning to mitigate the impact of market volatility on financial institutions?

Which action should you take?

Choose only one option

Reducing the institution's asset base

Diversifying the investment portfolio across industries

Raising capital through equity and debt offerings

Increasing leverage to boost profitability

Question 5: In financial risk analysis, the capital adequacy ratio (CAR) is used to assess:

Which action should you take?

Choose only one option

The ability of a bank to absorb losses

The risk-adjusted returns of a portfolio

The diversification of a financial institution's holdings

The impact of interest rate fluctuations on a portfolio

Question 6: Which method is most effective for identifying risks in new product launches in financial services?

Which action should you take?

Choose only one option

Risk control self-assessments (RCSA)

SWOT analysis

Scenario analysis

Risk workshops