Preview Questions Risk Manager | Role Specific Skill

Question 1: What is the primary purpose of Basel III regulations in the BFSI industry?

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Promote faster economic growth

Introduce consumer protection measures

Strengthen capital requirements

Enhance operational efficiency

Question 2: Which of the following is the first step in developing a risk management strategy?

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Identifying key business risks

Determining financial reserves

Conducting a SWOT analysis

Defining strategic goals

Question 3: Which of the following tools is most effective for identifying systemic risks in the financial market?

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Risk reporting software

Market trend analysis

Stress testing and scenario analysis

Regulatory compliance checks

Question 4: In the context of financial risk analysis, what does the "Sharpe ratio" measure?

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The correlation between two asset classes

The potential loss under adverse market conditions

The systematic risk of a portfolio

The risk-adjusted return of a portfolio

Question 5: How does asset quality affect a bank's financial analysis for risk management?

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High asset quality directly increases bank profitability

Poor asset quality can increase the likelihood of loan defaults

Asset quality has no significant effect on risk management

Poor asset quality reduces liquidity risk for the bank

Question 6: Which risk measure evaluates the potential loss of portfolio value beyond the VaR threshold?

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Beta

Tracking Error

Alpha

Conditional VaR