Business Analyst for Credit Risk

Topics covered

Moving Average Models, PD, LGD, Full Monte Carlo, interest rates

  • MAQ (Multiple Answer Question)
  • MCQ (Multiple Choice Question)
  • Descriptive Question
  • White Board Simulator
  • Coding Simulator
  • Audio Question
  • Video Question
  • Case Study Question

A Business Analyst for Credit Risk mainly works on development of requirements strategy, scope and implementation rules for Securitization, Traditional Credit Products (TCP) and Repos. It also provides technical design by conducting design sessions with the Capital Stakeholders. 

The Business Analyst for Credit Risk is designed to assess the candidates in the area of Risk Management technique such as VAR and Stress Testing, Financial Products knowledge such as Repos, Statistical packages such as SPSS / SAS, Data Mining techinques, OTC Derivatives and TCP, Credit Risk Business, Detail Business and Functional requirement knowledge, analysing options and risks, etc. This test consists of meaningful questions on Moving Average Models, PD, LGD, Full Monte Carlo, interest rates and many more. 

Using powerful reporting, you will have a detailed analysis of test results to help you make better decisions and predict candidate and employee success. 

This pre-employment test is useful for hiring:
  • Credit Risk Business Analyst (0-2 years experience)
  • Business Analyst - Risk and P&L (0-2 years experience)
  • Credit Risk Business Analyst - Wrong Way Risks and Settlements (0-2 years experience)

Test details:

BA test for Credit Risk enables employers and recruiters to identify potential hires by evaluating working skills and job readiness. For this reason, the emphasis is laid upon evaluating the knowledge of applied skills gained through real work experience, rather than theoretical knowledge. 

Questions: 30
Duration: 30 minutes
 

  • Business Analyst: 10 Questions 10 minutes

  • Credit Risk: 10 Questions 10 minutes

  • Analytical Thinking: 5 Questions 5 minutes

  • Writing Skills: 5 Questions 5 minutes

Business Analyst test for Credit Risk

Question #1 of 3

You are a Business Analyst at BD Bank. You are involved in a software project that is replacing an out-dated, inefficient legacy system (System X) with an efficient, process-driven web-based solution. There are however a number of challenges facing the project team. 

The project has requested a detailed stakeholder matrix. You have documented the stakeholder matrix in the RACI format. The stakeholder matrix identifies several key stakeholders. 

RACI legend:
Responsible - Those who do the work to achieve the task. 
Accountable - Signs off various project outputs and ensures thorough completion of each task
Consulted - Required to provide feedback on documents / in workshops.
Informed - Kept up to date on progress. 



Which of the following statements is not correct pertaining to the Business Analyst’s responsibilities as documented in the RACI matrix?

    • The business analyst will provide input into the development process and support the senior developer

    • The business analyst will document the Functional Requirement specification in accordance with the project governance principles

    • The business analyst will analyse the documented process and provide feedback to the stakeholders

    • The business analyst will send project progress communications to project stakeholders

Question #2 of 3

Consider PD as probability of default, LGD as the loss given default and EAD as exposure at default. At a portfolio level, expected credit losses are driven by which of them?

    • PD only

    • expected LGD only

    • PD and expected LGD only

    • None of the mentioned

Question #3 of 3

Consider a bank invests in a 1-year loan with a CCC credits. Also, the default probability is 24.27%. Assume that, using annual compounding (pay attention to compounding), the risk free 1 year spot rate is 6% and the recovery rate is 40%. What should be the minimum yield spread?

    • 10%

    • 15%

    • 24%

    • 40%

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24.00 Out of 40.00
Pass
60%
03
23 Minutes

Java EE

9/10

Hibernate

3/10

Oracle PL/SQL

7/10

Analytical Thinking

5/10

Note:If score<= 30% then its a Weakness. If score >=70% then its a Strength.

Strengths

Java EE, Oracle PL/SQL, Analytical Thinking

Weaknesses

Hibernate

Happy

It was a good test for me, the questions were on the latest technology of java on which I am currently working. It was a great experience. Thank you!

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