Societe Generale Global Solution Centre Lead Business Analyst Interview Questions, Process, and Tips

Expected Loss formulae calculates the potential loss from credit risk.

• Expected Loss = Probability of Default x Exposure at Default x Loss Given Default

• Probability of Default is the likelihood of a borrower defaulting on a loan

• Exposure at Default is the amount of money owed by the borrower at the time of default

• Loss Given Default is the percentage of the Exposure at Default that is not recoverable

• Expected Loss is used t...read more

Basel 4 is a set of banking regulations that aim to strengthen the resilience of the banking sector.

• Basel 4 introduces new capital requirements for banks

• It includes a new standardized approach for credit risk

• It also introduces a new output floor to limit the variability of risk-weighted assets

• Basel 4 aims to improve the comparability and transparency of banks' risk-weighted assets

• It also includes new requirements for m...read more

Counterparty Credit Risk is the risk of loss due to a counterparty defaulting on a financial contract. CVA is the cost of this risk.

• Counterparty Credit Risk is the risk that a party in a financial contract will default on their obligations.

• CVA (Credit Valuation Adjustment) is the cost of this risk and is calculated as the difference between the risk-free portfolio value and the value of the portfolio with counterparty ...read more

Basel 4 is an updated version of Basel 3 with stricter regulations and additional requirements.

• Basel 4 includes new requirements for market risk, credit risk, and operational risk.

• Basel 4 introduces a new standardized approach for measuring counterparty credit risk.

• Basel 4 requires banks to hold more capital against their exposures.

• Basel 4 also includes new disclosure requirements for banks.

• Basel 4 is expected to be im

Counterparty Credit Risk can be reduced or mitigated through various methods.

• Performing credit checks on counterparties

• Establishing credit limits for counterparties

• Collateralizing transactions

• Using netting agreements

• Diversifying counterparties

• Monitoring credit exposure regularly

BDD focuses on behavior while TDD focuses on testing.

• BDD stands for Behavior Driven Development while TDD stands for Test Driven Development.

• BDD emphasizes on the behavior of the system from the user's perspective.

• TDD emphasizes on testing the code and ensuring it meets the requirements.

• BDD uses natural language to describe the behavior of the system in scenarios.

• TDD uses code to test the functionality of the system.

• BD...read more

A user story is a small, specific requirement while an epic is a larger, more general requirement.

• User stories are typically written from the perspective of the end user and describe a specific action or feature they need.

• Epics are larger requirements that may encompass multiple user stories and often require more time and resources to complete.

• User stories are often used in agile development to break down larger requi...read more

VaR can be calculated using historical simulation, parametric method, and Monte Carlo simulation.

• Historical simulation uses past data to estimate potential losses.

• Parametric method assumes a normal distribution of returns and calculates VaR based on mean and standard deviation.

• Monte Carlo simulation uses random sampling to simulate potential outcomes and estimate VaR.

• Other methods include delta-normal method and extrem...read more

Fat tail loss refers to the extreme losses that occur due to rare events with high impact.

• Fat tail loss is a type of risk that is often overlooked because it is associated with rare events.

• It is called 'fat tail' because the probability distribution of the event has a fatter tail than a normal distribution.

• Examples of fat tail events include natural disasters, terrorist attacks, and financial market crashes.

• Fat tail lo...read more

Scrum ceremonies include Sprint Planning, Daily Stand-up, Sprint Review, and Sprint Retrospective.

• Sprint Planning - planning the work to be done in the upcoming sprint

• Daily Stand-up - a daily meeting to discuss progress and plan for the day

• Sprint Review - a meeting to review the work completed in the sprint

• Sprint Retrospective - a meeting to reflect on the sprint and identify areas for improvement

BA delivers various documents in a data migration project.

• Requirements document

• Data mapping document

• Data quality report

• Test cases and test results

• User acceptance testing (UAT) plan

• Training materials

• Data migration plan