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GARP 2016-FRR Exam Questions
- Topic 1: Credit Risk Management: This section of the exam measures skills of a Credit Risk Analyst and covers the assessment of credit risk, credit products risks, portfolio credit risk management, and the regulatory view of credit risk. It explains expected and unexpected losses, credit models, Basel Accords, credit default swaps, credit scoring, and stress testing credit exposures.
- Topic 2: Market Risk Management: This section of the exam measures skills of a Market Risk Analyst and covers the fundamentals of market risks across foreign exchange, interest rates, equities, and commodities. It explains market risk measurement tools like VaR and expected shortfall, examines trading strategies, market risk reporting, and the impact of Basel III on market risk.
- Topic 3: Operational Risk Management: This section of the exam measures skills of an Operational Risk Manager and covers the principles of operational risk management. It discusses operational risk identification, measurement, mitigation, monitoring, reporting, and the importance of governance frameworks such as the three lines of defense, along with loss data collection and scenario analysis.
- Topic 4: Asset and Liability Management: This section of the exam measures skills of a Treasury and ALM Specialist and covers asset and liability management frameworks, interest rate risk in the banking book, liquidity risk management, capital management, and non-trading market risks. It explains the roles of ALCO, treasury operations, Basel III liquidity measures, and management of funding risks.
Free GARP 2016-FRR Exam Actual Questions
Note: Premium Questions for 2016-FRR were last updated On Apr. 28, 2025 (see below)
Sam has hedged a portfolio of bonds against a small parallel shift in the yield curve using the duration measure. What should Sam do to ensure that the portfolio is hedged against larger parallel shifts in the yield curve?
Which one of the following four statements regarding counterparty credit risk is INCORRECT?
Which of the following statements explains how securitization makes retail assets highly liquid and the balance sheet easier to manage?
I . The bank can raise capital by selling the securitized bonds.
II . Any need to diversify credit risk can be achieved by selling the bank's own securitized bonds and buying other bonds that increase diversification.
III . The value of the securitization is linked to the credit rating of the bank and hence is easy to include in medium-term financial plans.
IV . Securitizations can be used to hedge credit risk by using limited market instruments.
Alpha Bank estimates its 1-month, 95% VaR is 30 million EUR. This means that in the next month, there is a
Which of the following statements regarding bonds is correct?
I . Interest rates on bonds are typically stated on an annualized rate.
II . Bonds can pay floating coupons that are directly linked to various interest rate indices.
III . Convertible bonds have an element of prepayment risk.
IV . Callable bonds have an element of equity risk.
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Alaine
9 days agoLonny
11 days ago