Preview Questions Risk Manager | Role Specific Skill

Question 1: What is the primary use of Monte Carlo simulations in financial risk analysis?

Which action should you take?

Choose only one option

To calculate credit ratings

To model the probability of different outcomes in a portfolio

To assess counterparty risk exposure

To determine the optimal asset allocation

Question 2: What is the primary objective of using a correlation matrix in portfolio risk management?

Which action should you take?

Choose only one option

To identify assets with high volatility for targeted investment

To determine the future price movements of individual assets

To calculate the portfolio's overall expected return

To understand the relationship between the returns of different assets in the portfolio

Question 3: In operational risk mitigation, which framework provides guidelines for implementing robust internal controls?

Which action should you take?

Choose only one option

BASEL III

COSO

MiFID II

IFRS

Question 4: Which financial ratio is commonly used to assess a company's ability to cover its debt obligations?

Which action should you take?

Choose only one option

Return on Assets (ROA)

Debt-to-Equity Ratio

Current Ratio

Price-to-Earnings Ratio

Question 5: Under the General Data Protection Regulation (GDPR), which of the following is the best practice to ensure compliance in financial data management?

Which action should you take?

Choose only one option

Implement strong firewalls

Limit access to data to authorized personnel only

All of the above

Encrypt sensitive data

Question 6: What is the purpose of credit scoring models in financial risk analysis?

Which action should you take?

Choose only one option

Measure default risk

Reduce interest rate volatility

Optimize liquidity reserves

Enhance operational efficiency