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Which of the following is not a tool available to financial institutions for managing credit risk:
Suggested Answer: B
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Collateral, limits to avoid credit exposure concentrations, termination rights based upon credit ratings, third party guarantees and credit derivatives are all tools or instruments that financial institutions use to manage their credit risk. A cumulative accuracy plot measures the accuracy of ratings, and is not a tool for managing credit risk. Therefore Choice 'b' represents the correct answer.
13 comments · newest first
AN
Anabel
11 months ago
Third party guarantees are also common in managing credit risk.
MA
Mabel
11 months ago
Collateral and credit derivatives are definitely tools, no doubt!
BA
Barrett
12 months ago
Wait, are we sure about that? Seems like it could be useful.
JA
Jacquline
12 months ago
Totally agree, it’s more of a performance metric!
GL
Glendora
12 months ago
Cumulative accuracy plot is not a credit risk tool.
AL
Alease
1 year ago
I recall that collateral and guarantees are definitely used, but I can't quite remember if the cumulative accuracy plot was mentioned as a tool in our materials.
ME
Merissa
1 year ago
I practiced a similar question where we had to identify tools for managing credit risk, and I feel like the cumulative accuracy plot doesn't fit in with the others.
CH
Chantell
1 year ago
I think collateral, third-party guarantees, and credit derivatives are all standard tools, but I'm hesitant about the cumulative accuracy plot being included as a tool.
AD
Adela
1 year ago
I remember studying credit risk management tools, but I'm not entirely sure about the cumulative accuracy plot. It seems more related to model performance than direct risk management.
RA
Rasheeda
1 year ago
Okay, let me think this through. The question says the current resource bundle is checkout.properties, so I'm guessing the answer is to add the German strings to a new file, checkout_de.properties, in the resources folder. That makes the most sense to me.
JE
Jess
1 year ago
I remember doing a practice question similar to this one. I'm leaning towards RA Throttling, but I might be mixing it up with something else.
DI
Dick
1 year ago
I'm kind of torn between the 7250QX and the 7010, but I feel like the 7010 might be a safer bet based on what I read.
RE
Reena
1 year ago
I remember discussing WPA2 PSK options, but I'm a bit unsure about the exact format that's accepted in the GUI.