Free practice test

Financial Risk Specialist Practice Test

Check what you know about the financial risk specialist job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on financial risk specialist knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15VaR measures:
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Answer: Potential loss. Risk.

Question 2 of 15A hedge:
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Answer: Offsets risk. Protection.

Question 3 of 15Credit risk is:
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Answer: Borrower default. Default.

Question 4 of 15Basel III covers:
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Answer: Bank capital. Regulation.

Question 5 of 15Backtesting checks:
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Answer: Models against reality. Validation.

Question 6 of 15Which term matches this definition: “Federal Reserve stress test.”
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Answer: CCAR. CCAR: Federal Reserve stress test.

Question 7 of 15What does “Backtesting” mean?
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Answer: Checking models against actual results.. Backtesting: Checking models against actual results.

Question 8 of 15Which term matches this definition: “Amount at risk.”
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Answer: Exposure. Exposure: Amount at risk.

Question 9 of 15What does “Stress test” mean?
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Answer: Testing losses in bad scenarios.. Stress test: Testing losses in bad scenarios.

Question 10 of 15Which term matches this definition: “How assets move together.”
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Answer: Correlation. Correlation: How assets move together.

Question 11 of 15What does “VaR” mean?
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Answer: Value at risk.. VaR: Value at risk.

Question 12 of 15Which term matches this definition: “Chance a borrower defaults.”
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Answer: Probability of default. Probability of default: Chance a borrower defaults.

Question 13 of 15What does “Liquidity risk” mean?
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Answer: Not having cash when needed.. Liquidity risk: Not having cash when needed.

Question 14 of 15Which term matches this definition: “Loss from price changes.”
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Answer: Market risk. Market risk: Loss from price changes.

Question 15 of 15What does “Operational risk” mean?
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Answer: Loss from failed processes.. Operational risk: Loss from failed processes.

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