Updated: Sep 30, 2026
No. of Questions: 342 Questions & Answers with Testing Engine
Download Limit: Unlimited
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Liquidity & ALM | 15% | - Liquidity coverage ratios - Funding strategies - Liquidity risk principles - Asset & Liability Management |
| Topic 2: Regulatory Capital & Governance | 10% | - ICAAP & SREP - Capital adequacy framework - Risk governance & internal controls |
| Topic 3: Banking Industry & Regulatory Framework | 15% | - Banking business models - Risk-based supervision - Basel Accords overview |
| Topic 4: Market Risk Management | 20% | - VaR and stress testing - Equity & commodity risk - Foreign exchange risk - Interest rate risk |
| Topic 5: Credit Risk Management | 25% | - Credit risk measurement - Capital requirements for credit risk - Counterparty credit risk - Credit risk mitigation |
| Topic 6: Operational Risk Management | 15% | - Risk measurement & control - Business continuity - AML & KYC requirements - Operational risk identification |
When considering the advantages of operational risk function owned by the Chief Compliance Officer in a financial institution, an operational risk manager consultant suggests that this governance approach will have all of the following advantages except:
Correct Answer: D 🗳️
Bank Milo has $4 million in cash and $5 million in loans coming due tomorrow with an
expected default rate of 1%. The proceeds will be deposited overnight. The bank owes $ 9 million on a securities purchase that settles in two days and pays off $8 million in commercial paper in three days that is not expected to renew. On what days does the bank face negative cumulative liquidity?
Correct Answer: A 🗳️
US-based BetaBank have accumulated Japanese yen, Japanese government bonds, options on Japanese yen, and positions in commodities that have a positive correlation with yen. Which one of the four following non-statistical risk measures could be used to evaluate the BetaBank's exposure to the Japanese economy?
Correct Answer: D 🗳️
What do option deltas measure?
Correct Answer: B 🗳️
A credit portfolio manager analyzes a large retail credit portfolio. Which of the following factors will represent typical disadvantages of market-linked credit risk drivers?
I. Need to supply a large number of input parameters to the model
II. Slow computation speed due to higher simulation complexity
III. Non-linear nature of the model applicable to a specific type of credit portfolios
IV.
Need to estimate a large number of unknown variable and use approximations
Correct Answer: B 🗳️
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