SBFC Finance Finance Manager Interview Questions and Answers

DV01 is a measure of the change in the price of a bond for a 1 basis point change in yield. Recognition measure in IFRS 9 is Expected Credit Loss (ECL).

• DV01 measures the sensitivity of a bond's price to changes in interest rates

• It represents the dollar value of a one basis point decrease in yield

• IFRS 9 uses Expected Credit Loss (ECL) as the recognition measure for impairment of financial assets

• ECL is based on the proba...read more

VaR stands for Value at Risk, a measure used to assess the potential loss in value of a portfolio over a specific time period.

• VaR is a statistical measure used to quantify the level of financial risk within a portfolio.

• Variables used in calculating VaR include the portfolio value, the time period, and the level of confidence.

• For example, a 95% VaR of $1 million over a one-week period means there is a 5% chance of losin

Delta and gamma are terms used in finance to measure the sensitivity of an option's price to changes in the price of the underlying asset.

• Delta measures the rate of change of the option price with respect to changes in the price of the underlying asset. It ranges from -1 to 1 for call options and 0 to -1 for put options.

• Gamma measures the rate of change of delta with respect to changes in the price of the underlying as...read more

Delta measures the rate of change of an option's price with respect to the underlying asset's price, while gamma measures the rate of change of delta with respect to the underlying asset's price.

• Delta is the first derivative of the option price with respect to the underlying asset price, while gamma is the second derivative of the option price with respect to the underlying asset price.

• Delta tells us how much the optio...read more

A strong management structure ensures clear communication, efficient decision-making, and effective delegation of tasks.

• Clear communication channels help in conveying goals and expectations effectively.

• Efficient decision-making processes ensure timely actions and adaptability to changes.

• Effective delegation of tasks ensures that responsibilities are distributed evenly and tasks are completed efficiently.

• Strong manageme...read more

The technical report should detail the land cost, house cost, and overall amount.

• The technical report should include a breakdown of the land cost and house cost.

• The overall amount should be the sum of the land cost and house cost.

• The report should provide a detailed analysis of the factors that contribute to the land and house costs.

• The report should also include any relevant financial calculations, such as depreciatio...read more