Associate Vice President Finance Interview Questions and Answers

RoTE is a financial metric used to evaluate the profitability of a company's tangible equity.

• RoTE is calculated by dividing net income by average tangible equity.

• It measures how efficiently a company is using its tangible assets to generate profit.

• Planning and budgeting involve setting financial goals, allocating resources, and monitoring performance to achieve desired RoTE.

• For example, a company may set a target RoTE of 15% and adjust its budget and strategies accordingly to...read more

I would facilitate open communication, clarify expectations, and work towards a mutually beneficial solution.

• Encourage open communication between audit and process owners to understand each other's perspectives

• Clarify roles, responsibilities, and expectations to avoid misunderstandings

• Seek common ground and work towards a mutually beneficial solution

• Mediate discussions and facilitate compromise if necessary

A Banking Profit and Loss (P&L) statement is a financial document that shows the revenues, expenses, and profits of a bank over a specific period of time.

• It includes details of interest income, fees and commissions, operating expenses, provisions for loan losses, and net income.

• The statement helps in analyzing the financial performance and profitability of the bank.

• It is an essential tool for stakeholders, investors, and regulators to assess the financial health of the bank.

• E...read more

Residual risk can be greater than inherent risk in certain situations.

• Residual risk is the risk that remains after controls are implemented to mitigate inherent risk

• Residual risk can be greater than inherent risk if the controls are ineffective or if new risks emerge

• For example, if a company implements controls to reduce the inherent risk of cyber attacks but the controls are not sufficient, the residual risk of a cyber attack could be greater than the initial inherent risk

CIR ratio stands for Cash Interest Coverage ratio, which measures a company's ability to pay interest expenses with its operating cash flow.

• CIR ratio is calculated by dividing operating cash flow by total interest expenses.

• A higher CIR ratio indicates that a company is more capable of covering its interest expenses with its cash flow.

• A lower CIR ratio may indicate financial distress or an inability to generate enough cash flow to cover interest payments.