Preview Questions Risk Assessment Analyst | Role Specific Skill

Question 1: In portfolio risk analysis, what is the role of Monte Carlo simulations?

Which action should you take?

Choose only one option

Normalizing data

Eliminating outliers

Simulating risk scenarios

Identifying correlations

Question 2: Which of the following is a preventative measure for cybersecurity risk in a bank?

Which action should you take?

Choose only one option

Use of encryption and secure networks

Relying on external service providers for system security

Ignoring phishing attempts to reduce overhead costs

Allowing unlimited access to data for better analysis

Question 3: Which data analysis technique would be most effective for detecting correlations between macroeconomic indicators and market risk?

Which action should you take?

Choose only one option

Support vector machines

K-means clustering

Pearson correlation

Linear regression

Question 4: How would you assess the relationship between a bank's loan default rates and overall economic indicators?

Which action should you take?

Choose only one option

By conducting a simple linear regression on default rates and economic data

By performing a time-series analysis with quarterly loan default data

By utilizing K-means clustering to group economic data and default rates

By using a vector autoregressive (VAR) model to analyze interdependencies

Question 5: What type of visualization is most effective when comparing risk scenarios across different market conditions?

Which action should you take?

Choose only one option

A scenario matrix or sensitivity analysis graph

A pie chart showing the market share of various risk scenarios

A line chart depicting monthly revenue changes

A bar chart comparing annual financial performance

Question 6: In credit risk identification, how is counterparty risk typically assessed?

Which action should you take?

Choose only one option

By evaluating the portfolio's overall diversity

By monitoring market fluctuations

By examining historical trends in default rates

By analyzing the financial stability and creditworthiness of the counterparty