Preview Questions Risk Manager | Role Specific Skill

Question 1: In the context of MiFID II, which of the following is a primary regulatory focus for financial institutions?

Which action should you take?

Choose only one option

Capital adequacy management

Investor protection and transparency

Market risk mitigation

Credit risk hedging

Question 2: Which risk assessment framework is designed specifically to evaluate the resilience of financial institutions under adverse conditions?

Which action should you take?

Choose only one option

ISO 31000

CCAR (Comprehensive Capital Analysis and Review)

Basel III

Sarbanes-Oxley Act

Question 3: When managing portfolio risk, how is "systematic risk" best addressed?

Which action should you take?

Choose only one option

By diversifying across assets that have low correlation with each other

By investing primarily in high-risk assets

By minimizing exposure to assets with high correlation to market movements

By using derivative instruments to hedge against market downturns

Question 4: What does the acronym FATCA stand for in regulatory compliance?

Which action should you take?

Choose only one option

Foreign Account Tax Compliance Act

Financial and Tax Control Act

Financial Accountability for Trade Compliance Act

Fiscal Assessment and Trade Control Agreement

Question 5: In risk-adjusted performance measurement, what does the Sortino ratio focus on?

Which action should you take?

Choose only one option

Downside risk

Total returns

Upside volatility

Benchmark tracking error

Question 6: Which of the following is the first step in developing a risk management strategy?

Which action should you take?

Choose only one option

Identifying key business risks

Determining financial reserves

Conducting a SWOT analysis

Defining strategic goals