Preview Questions Risk Manager | Role Specific Skill

Question 1: What does a high "beta" coefficient indicate in financial analysis?

Which action should you take?

Choose only one option

The asset or portfolio is less sensitive to market changes

The asset is not affected by market fluctuations

The asset or portfolio is more volatile compared to the market

The asset has a lower risk of default

Question 2: Which of the following is a liquidity risk factor to consider when managing a portfolio in the BFSI industry?

Which action should you take?

Choose only one option

The beta of the portfolio

The correlation between asset returns

The volatility of asset prices relative to market indices

The ease of selling an asset without impacting its price

Question 3: What is the role of collateralization in risk mitigation for secured lending?

Which action should you take?

Choose only one option

Minimize regulatory requirements

Reduce lender exposure to default

Improve operational efficiency

Enhance borrower credit score

Question 4: How does asset quality affect a bank's financial analysis for risk management?

Which action should you take?

Choose only one option

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 5: How is liquidity risk in a portfolio generally measured?

Which action should you take?

Choose only one option

Evaluating portfolio turnover

Using the Sharpe Ratio

Calculating the Treynor Ratio

Assessing bid-ask spreads

Question 6: Which metric is most suitable for aligning risk with strategic objectives in BFSI?

Which action should you take?

Choose only one option

ROI (Return on Investment)

Internal Rate of Return

RAROC (Risk-Adjusted Return on Capital)

Net Present Value