Risk management master quiz

Which among the following is a tool to measure the Credit Risk embedded in a loan asset ?

• Invocation of Insurance

• Credit Risk Rating

• Loan Pricing

• None of the above

Which among the following is a Credit Risk Mitigant ?

• Pricing of Loan assets

• Legal Action

• Insurance of assets

• None of the above.

One of your Borrower Customer failed to service monthly interest in his working capital account. Which among the following is correct about the type of risk the Bank is facing in this context ? 

• Fraud Risk

• Interest Rate Risk

• Market Risk

• Credit Risk

Which among the following is a not a Credit Risk ?

• Default Risk

• Counterparty Risk

• Fraud Risk

• Portfolio Risk

Which among the following is NOT part of the building blocks of an effective Credit Risk Management in a Bank ?

• Organisational Structure

• Operations & Systems

• Policy and Strategy

• Credit monitoring framework

Which among the following is not a Parameter used for Credit Risk Rating architecture ? 

• Industry Risk

• Basis Risk

• Business Risk

• Management Risk

In working capital accounts which among the given ratios is used to assess Financial Risk ?

• Debt Equity Ratio

• Debt Service Coverage Ratio

• Current Ratio

• All of the Above

Which among the following is not a Credit Information Company in India ?

• CIBIL

• Moodys

• Experian

• Equifax

Reputation and Standing of a Promoter is assessed as part of which Parameter under Credit Risk Rating ?  

• Management Risk

• Industry Risk

• Business Risk

• Financial Risk

Which among the following is not a Credit Risk Mitigant ?

• ECGC Guarantee

• Insurance of Assets

• Collaterals

• Pricing of Loan assets