1. Risk management covers
a) Risk identification,
b) Risk measurement
c) Risk monitoring & control
d) all of above
2. Quantitative measures of risks can be made on the basis of
a) Sensitivity
b) volatility
c) downside potential
d) all of them
3. Risk mitigation measures result in i) reducing upside potential and ii) reducing downside potential
a) Statement i) is correct
b) Statement ii) is correct
c) Both the statements are correct
d) Both the statements are wrong.
4. In sanctioning a loan of Rs. 100 crore at fixed rate, which one of the following risks are undertaken .
i) Liquidity risk ii) Interest rate risk
iii) Credit Risk iv) Operational risk
a) All of them
b) i) and ii)
c) ii) and iii)
d) ii), iii) and iv)
5. The overall responsibility of managing risks lies on:
a) The top management of the bank
b) Board level sub-committee for Risk Management
c) The Board of directors
d) ALCO
6. Which of the following function does not pertain to that of RMC?
a) Setting guidelines for risk management
b) Enforcing compliance of the risk parameters
c) Formulate policies on standards for presentation
d) Ensure robustness of models used for measurement of risks
7. A risk that arises due to worsening of credit quality is
a) Portfolio risk
b) Counterparty risk
c) Credit risk
d) Intrinsic risk
8. In order to develop capability to manage credit risk, a bank must have in place the following: i) Credit Rating Model ii) Capability to track rating migration
a) Only i) is required
b) Only ii) is required
c) Both i) & ii) are required
d) None of the above
9. The model developed by Credit Swisse for measuring and accounting for credit risk is known as:
a) Credit Metrics
b) CreditRisk+
c) Credit Monitor
d) none of the above
10. The model developed by J P Morgan for evaluating credit risk is known as:
a) Credit Metrics
b) CreditRisk+
c) Credit Monitor
d) none of the above
Other Parts
Risk Management Part 2
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
a) Risk identification,
b) Risk measurement
c) Risk monitoring & control
d) all of above
2. Quantitative measures of risks can be made on the basis of
a) Sensitivity
b) volatility
c) downside potential
d) all of them
3. Risk mitigation measures result in i) reducing upside potential and ii) reducing downside potential
a) Statement i) is correct
b) Statement ii) is correct
c) Both the statements are correct
d) Both the statements are wrong.
4. In sanctioning a loan of Rs. 100 crore at fixed rate, which one of the following risks are undertaken .
i) Liquidity risk ii) Interest rate risk
iii) Credit Risk iv) Operational risk
a) All of them
b) i) and ii)
c) ii) and iii)
d) ii), iii) and iv)
5. The overall responsibility of managing risks lies on:
a) The top management of the bank
b) Board level sub-committee for Risk Management
c) The Board of directors
d) ALCO
6. Which of the following function does not pertain to that of RMC?
a) Setting guidelines for risk management
b) Enforcing compliance of the risk parameters
c) Formulate policies on standards for presentation
d) Ensure robustness of models used for measurement of risks
7. A risk that arises due to worsening of credit quality is
a) Portfolio risk
b) Counterparty risk
c) Credit risk
d) Intrinsic risk
8. In order to develop capability to manage credit risk, a bank must have in place the following: i) Credit Rating Model ii) Capability to track rating migration
a) Only i) is required
b) Only ii) is required
c) Both i) & ii) are required
d) None of the above
9. The model developed by Credit Swisse for measuring and accounting for credit risk is known as:
a) Credit Metrics
b) CreditRisk+
c) Credit Monitor
d) none of the above
10. The model developed by J P Morgan for evaluating credit risk is known as:
a) Credit Metrics
b) CreditRisk+
c) Credit Monitor
d) none of the above
Other Parts
Risk Management Part 2
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
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Risk Management
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