Preview Questions Risk Assessment Analyst | Role Specific Skill

Question 1: When performing compliance monitoring, what should be prioritized?

Which action should you take?

Choose only one option

Focusing only on financial compliance issues

Following regulatory requirements without considering operational impact

Identifying non-compliance and addressing it proactively

Minimizing the number of audits performed

Question 2: When conducting stress testing, which risk is most effectively identified?

Which action should you take?

Choose only one option

Operational inefficiency

Market and credit risks under adverse conditions

Customer attrition

Regulatory breaches

Question 3: Which of the following regulations focuses on counterparty risk in derivatives markets and introduces central clearing obligations?

Which action should you take?

Choose only one option

Basel III

EMIR (European Market Infrastructure Regulation)

MiFID II

Volcker Rule

Question 4: What is the primary objective of a diversification strategy in risk mitigation?

Which action should you take?

Choose only one option

To prioritize investment in stable, low-risk assets

To create a portfolio consisting of similar, high-risk assets

To spread investments across different asset classes to reduce exposure to a single source of risk

To focus on high-return investments with higher associated risk

Question 5: What is the best strategy for mitigating reputational risk during a public relations crisis involving a financial institution?

Which action should you take?

Choose only one option

Implementing transparent risk reporting

Increasing media engagement and communications

Offering compensation to affected clients

Enhancing internal audit mechanisms

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