HDFC Bank Risk Analyst Interview Questions and Answers

Basic SQL queries like Joints, group by function, use of having...

Q1. Run me through your cv
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Q2. Name different types of swap & explain how any one works
Ans. 
Different types of swaps include interest rate swaps, currency swaps, and commodity swaps.
• Interest rate swaps involve exchanging fixed and floating interest rate payments based on a notional amount.

• Currency swaps involve exchanging principal and interest payments in different currencies.

• Commodity swaps involve exchanging cash flows based on the price of a commodity.

• Example: A company with a variable rate loan can enter...read more
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Q3. Whats an option. Who is the buyer who is the seller
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An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price.
• The buyer of an option pays a premium to the seller for the right to buy or sell the underlying asset at a specific price.

• The seller of an option is obligated to sell or buy the underlying asset at the specified price if the buyer chooses to exercise their option.

• Options can be used for...read more
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Q4. What is var and how would you apply it
Ans. 
VAR stands for Value at Risk. It is a statistical measure used to estimate the potential loss in an investment portfolio.
• VAR is used to determine the maximum potential loss that an investment portfolio may incur over a given time period.

• It is calculated by analyzing the historical data of the portfolio and estimating the worst-case scenario loss.

• VAR is often used by risk analysts to set risk limits and determine the am...read more
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Q5. Explain any one type of fixed income
Ans. 
One type of fixed income is bonds
• Bonds are debt securities issued by companies or governments to raise capital

• They pay a fixed interest rate to the bondholder

• Bonds have a maturity date when the principal is repaid to the bondholder

• Examples include Treasury bonds, corporate bonds, municipal bonds
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Q6. Have you worked on platform such as murex or bloomberg. Whats your experience with it.
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Q7. Where do you live and when can you start from
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Q8. Any questions for me
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Q1. Run me through your cv
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Q2. Explain this job profile to me
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Q3. Why did you not pursue anything other than bcom
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Q4. Whats your reason for joining this profile
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Q5. Any questions for me
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Q1. Tell me about your self
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Q1. How do you analyse an industry
Ans. 
Analyzing an industry involves assessing market trends, competition, regulations, and economic factors to identify risks and opportunities.
• Conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.

• Examine market trends using tools like Porter's Five Forces to understand competitive dynamics.

• Analyze financial performance metrics such as revenue growth, profit margins, and return on investment...read more
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Q2. How do you assess risk for an FD backed loan
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Assessing risk for an FD backed loan involves evaluating borrower creditworthiness, market conditions, and collateral value.
• Evaluate the borrower's credit score and history to determine their repayment ability.

• Analyze the interest rate environment; higher rates may indicate increased risk.

• Consider the loan-to-value ratio; a lower ratio suggests less risk.

• Review the economic conditions that could impact the borrower's i...read more
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Q3. Tell me about yourself
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Q4. Tell me a challenging situation
Ans. 
I faced a challenging situation when a major risk assessment project had conflicting data from multiple sources, requiring careful analysis.
• Identified discrepancies in data from different departments, which led to confusion in risk evaluation.

• Conducted a thorough review of each data source to understand the root cause of the inconsistencies.

• Collaborated with team members to gather additional insights and validate the d...read more
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Q5. How to do you manage stakeholders
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Effective stakeholder management involves communication, understanding needs, and building relationships to align goals and mitigate risks.
• Identify stakeholders: Recognize all parties involved, such as project sponsors, team members, and clients.

• Assess their interests: Understand what each stakeholder values and their potential impact on the project.

• Communicate regularly: Establish a communication plan to keep stakehol...read more
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