Anti cheat

Why is risk management important for modern banks?

• To optimize profit

• To protect the interests of shareholders

• To promote competition

• To maintain financial stability

What type of risk do banks have to face?

• Financial risk and consolidated risk

• Market risk and credit risk

• Policy risk and operational risk

• Legal risk and competitive risk

What requirement does risk management help banks meet?

• Requirements on ethics and transparency

• Requirements on competition and legal requirements

• Requirements on safety and efficiency

• Requirements on capital and profit requirements

What is the main benefit of proper risk management?

• Optimize capital allocation and maximize profit

• Enhance credibility

  and build trust

• Boost competitiveness

  and enhance stability

• Protect shareholder interests and safeguard customer interests

How does risk management help banks gain a competitive advantage?

• Enhance resilience during economic recession

• Enhance resilience during economic development

• Enhance resilience during political recession

• Enhance resilience during economic stability

What does adverse selection require in the lending market?

• Accept all borrowers without checking

• Collect reliable information from potential borrowers

• Only lend to low-risk individuals

• No need to select, lend randomly

What is the most important principle of credit risk management?

• Accept all borrowers without checking

• Only lend to low-risk individuals

• Collect reliable information from potential borrowers

• No need for screening, random lending

When applying for a personal loan, what information will you be asked for?

• Personal interests, family relationships

• Salary, bank account,

  other assets

• List of friends, relatives

• Educational background, work experience

To minimize the risk of dishonest behavior, financial organizations need to adhere to what principle?

• No need to manage

  credit risk

• Do not check the activities of the borrower

• Allow the borrower to participate in risky activities

• Write restrictive terms into the loan contract

What is collateral in the credit system?

• The assets that the borrower commits to the bank if they do not repay the debt

• The amount of money that the borrower has to pay monthly

• The amount of money that the borrower receives from the bank

• The amount of money that the bank has to pay to the borrower if they do not repay the debt