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Risk Analyst Interview Questions
Risk Analysts evaluate portfolio decisions and forecast potential losses from investments. They help companies eliminate financial risks and make profitable decisions.
During your interviews, assess candidates’ risk assessment abilities and data analysis software skills. Test their knowledge of the tools you use, but also keep an eye out for detail-oriented candidates who demonstrate an analytical way of thinking. Candidates who have researched your industry, or have previous financial experience, will stand out.
Look for candidates who can proactively identify risks by combining and analyzing information from various sources, including confidential data. Examples from candidates’ past work experiences and their answers to hypothetical scenarios will help you evaluate their problem-solving and critical thinking skills.
Operational and Situational questions
- You are in the middle of a presentation when you notice you’ve made some mistakes in calculations. What do you do?
- How would you determine if we should loan [$X] to a company?
- Where do you think interest rates will be in the next 12 months? Why?
- We are about to close a big deal when you discover that the potential client lacks creditworthiness. How do you handle this situation?
- What financial software do you have experience using, and in what capacity?
- How do you calculate a company’s WACC? Why is it helpful?
- What is a good debt-to-equity ratio? Why?
- How do you calculate a company’s cash flow if you know its net income?
- What is a credit default swap (CDS) and where do you use it?
- Are you familiar with Basel III?
- On an average work day, how often do you normally collaborate with Financial Analysts and/or Accountants at your company? Do you also regularly interact with external partners?
- How do you stay current with industry developments and financial regulations?
- Have you ever suggested an investment that turned out to be a loss for your client? What did you learn from that experience?
- Describe a time you recommended a cost-effective solution. What was it and how did it save money?