Preview Questions Risk Manager | Role Specific Skill

Question 1: Which of the following best defines "tracking error" in portfolio management?

Which action should you take?

Choose only one option

The difference between the expected return and the actual return of the portfolio

The assessment of market risk exposure within the portfolio

The deviation of the portfolio's returns relative to a benchmark index

The measure of liquidity risk in the portfolio

Question 2: What is the primary objective of the European Market Infrastructure Regulation (EMIR) in risk management?

Which action should you take?

Choose only one option

To promote competition among financial services providers

To increase the accessibility of financial products

To ensure that over-the-counter derivatives are cleared through central counterparties

To prevent market manipulation in financial securities

Question 3: How does capital adequacy relate to financial risk management in banks?

Which action should you take?

Choose only one option

It indicates how well a bank can withstand financial distress

It reflects a bank's ability to generate income from assets

It measures how much debt the bank is carrying

It shows a bank's revenue potential

Question 4: How would you assess the long-term sustainability of a financial institution when creating a strategic plan?

Which action should you take?

Choose only one option

By reviewing its investment in new technologies

By measuring the strength of its brand in emerging markets

By evaluating its current liquidity position

By conducting a comprehensive environmental risk assessment

Question 5: Which method is most effective for identifying risks in new product launches in financial services?

Which action should you take?

Choose only one option

Risk control self-assessments (RCSA)

SWOT analysis

Scenario analysis

Risk workshops

Question 6: Which compliance requirement mandates financial institutions to disclose beneficial ownership information for corporate clients?

Which action should you take?

Choose only one option

GDPR

SOX

FinCEN's CDD Rule

FATCA