Sree Lalithaa Marines Interview Questions and Answers

Organisations face various types of risks that can impact their operations and success.

• Financial risks such as market fluctuations, credit risks, and liquidity risks

• Operational risks such as system failures, supply chain disruptions, and human errors

• Reputational risks such as negative publicity, loss of customer trust, and legal issues

• Compliance risks such as regulatory changes, data privacy laws, and anti-corruption laws

• Strategic risks such as competition, technological adva...read more

ROTE is calculated by dividing net income by average shareholder's equity. Debt Equity ratio is calculated by dividing total debt by shareholder's equity.

• ROTE stands for Return on Tangible Equity

• ROTE is a measure of a company's profitability

• Debt Equity ratio indicates the proportion of debt and equity used to finance a company's assets

• A high Debt Equity ratio indicates a company is relying more on debt to finance its operations

• ROTE and Debt Equity ratio are important financia...read more

Governance is the process of managing and controlling an organization to achieve its objectives and ensure compliance with laws and regulations.

• Governance involves setting policies, procedures, and guidelines for decision-making and accountability.

• It includes monitoring and evaluating performance, managing risks, and ensuring compliance with laws and regulations.

• An enterprise-wide risk framework is a structured approach to identifying, assessing, and managing risks across an ...read more

Leverage refers to the use of borrowed funds to increase the potential return on an investment.

• Leverage allows investors to make larger investments than they would be able to with their own funds.

• It can amplify both gains and losses.

• Common examples of leverage include margin trading and using options contracts.

• High levels of leverage can be risky and lead to significant losses.

• Leverage is often used in real estate investing to purchase properties with a small down payment.

RWA stands for Risk Weighted Assets, which is a measure of the risk that a bank's assets pose to its solvency.

• RWA is used to determine the amount of capital that a bank must hold to cover its risks.

• It takes into account the credit risk, market risk, and operational risk of a bank's assets.

• Higher risk assets have a higher RWA, which means the bank must hold more capital to cover those risks.

• RWA is calculated using a standardized approach or an internal ratings-based approach.

• R...read more