Preview Questions Risk Manager | Role Specific Skill

Question 1: How does the Pareto principle apply to risk identification?

Which action should you take?

Choose only one option

80% of risks occur in external processes

80% of risks come from 20% of processes

20% of risks result in 80% of operational losses

20% of risks are unpredictable

Question 2: When developing a risk mitigation strategy, which of the following is the most important consideration?

Which action should you take?

Choose only one option

The alignment of mitigation efforts with the organization's long-term goals

The ability to quickly implement changes

The immediate impact on profitability

The reduction of market competition

Question 3: In the context of market abuse regulation under MAR (Market Abuse Regulation), which of the following practices is prohibited?

Which action should you take?

Choose only one option

Risk-weighted asset management

Portfolio diversification

Insider trading

Investment banking operations

Question 4: What is the role of insurance in risk mitigation for financial institutions?

Which action should you take?

Choose only one option

To increase profitability

To transfer certain risks that cannot be avoided

To reduce operational costs

To guarantee compliance with regulatory requirements

Question 5: Which of the following is a key indicator of financial risk in the banking sector?

Which action should you take?

Choose only one option

Market share growth

Employee turnover rates

Customer satisfaction scores

Liquidity ratios

Question 6: In the case of a credit portfolio, which of the following risk mitigation techniques can be used to limit exposure to single counterparty risk?

Which action should you take?

Choose only one option

Diversifying across multiple asset classes

Increasing capital reserves

Setting exposure limits and monitoring regularly

Using a more aggressive credit policy