Preview Questions Risk Assessment Analyst | Role Specific Skill

Question 1: What is the main advantage of a contingency plan in risk mitigation?

Which action should you take?

Choose only one option

It reduces capital costs

It increases operational efficiency

It provides a predefined response to unexpected events

It guarantees no risks occur

Question 2: In risk reporting, which section is critical for outlining regulatory compliance adherence?

Which action should you take?

Choose only one option

Compliance section

Executive summary

Risk metrics

Methodology

Question 3: Which of the following is a critical step in identifying reputational risk for a financial institution?

Which action should you take?

Choose only one option

Conducting market risk analyses

Modeling financial outcomes in case of losses

Reviewing internal compliance audits

Engaging with stakeholders and monitoring public sentiment

Question 4: When assessing liquidity risk, which of the following data metrics is most useful in determining the ability of a financial institution to meet short-term obligations?

Which action should you take?

Choose only one option

Cash flow at risk (CFaR)

Current ratio

Net interest margin (NIM)

Debt-to-equity ratio

Question 5: When conducting a stress test on a financial portfolio, which dataset is most critical?

Which action should you take?

Choose only one option

Real-time transaction data

Historical price data

Macro-economic data

Transaction fees data

Question 6: What type of risk is associated with a bank's failure to comply with regulatory standards?

Which action should you take?

Choose only one option

Operational risk

Legal risk

Compliance risk

Credit risk