Preview Questions Risk Manager | Role Specific Skill

Question 1: Which measure indicates the proportion of non-performing loans to total loans in a bank's portfolio?

Which action should you take?

Choose only one option

Liquidity Ratio

Coverage Ratio

Debt Service Ratio

NPL Ratio

Question 2: How is portfolio concentration risk typically mitigated?

Which action should you take?

Choose only one option

Increasing cash reserves

Diversifying investments across sectors and geographies

Investing in high-risk assets

Allocating more to fixed-income securities

Question 3: Which risk measure evaluates the potential loss of portfolio value beyond the VaR threshold?

Which action should you take?

Choose only one option

Beta

Tracking Error

Alpha

Conditional VaR

Question 4: What is the role of the Financial Action Task Force (FATF) in global regulatory compliance?

Which action should you take?

Choose only one option

Monitor international trade agreements

Promote equity investments

Standardize accounting practices

Combat money laundering and terrorist financing

Question 5: Which type of financial risk is most effectively mitigated using interest rate swaps?

Which action should you take?

Choose only one option

Operational risk

Liquidity risk

Interest rate risk

Credit risk

Question 6: What is the main objective of duration analysis in fixed-income portfolio risk management?

Which action should you take?

Choose only one option

Minimize reinvestment risk

Determine creditworthiness

Maximize returns

Assess sensitivity to interest rate changes