Risk Analyst Interview Questions

This ultimate sample of risk analyst interview questions comprises a snapshot of what to look for in the contenders.

Risk Analyst Interview Questions

The task of risk analyst is to evaluate portfolio decisions and forecast potential losses from investments. These individuals help the organizations eradicate financial risks and make profitable decisions.

While interviewing, make sure you evaluate the data analysis software skills along with the risk assessment abilities of the candidates. You can also test their knowledge of tools that you use. Pay attention to those who are detail oriented and have an analytical way of thinking.

Keep an eye out for the contenders who have previous financial experience. Such contenders will have researched your industry. Look for the individuals who can proactively discover risks by combining and analyzing details from different resources.

You can pose hypothetical scenarios to your contenders as this will let you assess their critical thinking and problem-solving skills.

Add on these crucial risk analyst interview questions for your next hiring to tease out what potential they have.

Operational and Situational questions

• Suppose you are in the middle of a presentation and you notice that you have made some mistakes in calculations. What would you do at that time?
• How would you determine that whether we should loan $A to a firm or not?
• Imagine we are about to close a big deal and you discover that the client lacks creditworthiness. What would you do?
• Where do you think interest rates will be in the next one year?

Role-specific questions

• What is a good debt-to-equity ratio?
• How do you determine a company’s WACC?
• Mention the financial softwares you have used.
• How much familiar are you with Basel III?
• Define credit default swap (CDS). Where do you use it?
• How do you evaluate a company’s cash flow when you know its net income?

Behavioral questions

• How often do you work with Financial Analysts or Accountants? Do you regularly interact with external partners?
• Was there a time when you suggested an investment, which turned out to be a loss for your client? If yes, then what did you learn from the experience?
• By what resources you keep yourself updated with the financial regulations and current changes?
• Recall a time when you recommended a lucrative solution. Explain it.