Credit Risk Assessment Quiz
Credit Risk Assessment Quiz
Test your understanding of credit risk assessment concepts with our engaging quiz. This quiz will challenge your knowledge on essential topics such as Probability of Default, Expected Credit Loss, and the implications of Stage classification in IFRS 9.
Get ready to explore and evaluate your expertise!
- A comprehensive assessment of credit risk knowledge
- Multiple-choice and true/false questions
- Ideal for professionals and students alike
This triggers movement from Stage 1 to Stage 2. It is based on an organisation's internal assessment of the increase in the risk to default.
Dynamic Organisation Movement
Significant Increase in Legal Risk
Significant Increase in Credit Risk
Static Data Update
This is the likelihood that the counterparty will default over a certain time horizon
Exposure at Default
Loss Given Default
Definition of Default
Probability of Default
What type of ECL should be recognized for non-performing accounts?
Lifetime ECL
Short-term ECL
12-Month ECL
Permanent ECL
This method calculates the probability of default in cycle-neutral economic conditions
Circular Method
Logistic Regression
Pont-in-Time (PiT)
Through-the-Cycle (TTC)
This is the assigned loss estimate when a counterparty has defaulted, after all recoveries are taken into account.
Exposure-at-Default
Loss Given Default
Probability of Default
Definition of Default
Which of these influence PD, EAD & LGD?
Currency
Customer type
Outstanding
Company ranking
Maximum limit
Client's religious belief
Macroeconomic variables
Maturity date
Address
This method calculates probability of default in current economic conditions
Through-the-Cycle (TTC)
Current Cycle Method (CCM)
Point-in-Time (PIT)
Present Condition Analysis (PCA)
Accounts with default ratings (20,21,22) will fall under what Stage in IFRS 9?
Stage 1
Stage 2
Stage 3
Not Eligible for IFRS
True or False: The higher the LGD, the lower the ECL.
True
False
True or False: The higher the outstanding amount, the higher the EAD.
True
False
An account which previously had a credit rating of 8 and now has a credit rating of 18 will fall under what Stage?
Stage 1
Stage 2
Stage 3
Not Eligible for IFRS
What type of ECL will be recognized for Stage 1 accounts?
12-Month ECL
One Time ECL
Lifetime ECL
Permanent ECL
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