80+ Lead Business Analyst Interview Questions and Answers

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 credit risk.

• CVA takes into account the probability of defa...read more

As a business analyst, I will prioritize the remaining tasks and work with the scrum team to find a solution.

• Assess the impact of the missed task on the overall sprint goal

• Prioritize the remaining tasks based on their importance to the sprint goal

• Collaborate with the scrum team to find a solution, such as extending the sprint or removing less critical tasks

• Communicate the impact of the missed task to stakeholders and adjust expectations accordingly

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

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.

• BDD involves collaboration between developers, testers, and ...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 requirements into smaller, more manageable pieces.

• Epics can be ...read more

Assessing completeness of user stories using INVEST criteria.

• INVEST stands for Independent, Negotiable, Valuable, Estimable, Small, and Testable.

• A user story is complete if it meets all the criteria of INVEST.

• Independence: User story should be self-contained and not dependent on other stories.

• Negotiable: Details of the story can be negotiated between the team and stakeholders.

• Valuable: Story should deliver value to the end user or customer.

• Estimable: Team should be able to es...read more

Requirements were gathered through collaboration between the Product Owner and Business Analyst in the team.

• Requirements were gathered through stakeholder interviews, workshops, and document analysis.

• The Product Owner and Business Analyst worked closely together to ensure all requirements were captured accurately.

• The Business Analyst facilitated the requirements gathering process and documented the findings for review and validation.

• Regular meetings were held with stakeholder...read more

To improve the overall quality of the process, I would focus on identifying root causes, implementing process improvements, and monitoring results.

• Conduct a thorough analysis to identify the root causes of the quality issues

• Collaborate with stakeholders to develop and implement process improvements

• Establish key performance indicators (KPIs) to monitor the effectiveness of the changes

• Regularly review and adjust the process based on feedback and data

• Provide training and support...read more

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

I orient myself with the cardinal directions and locate my starting point.

• Identify North, South, East, and West on the map

• Locate my current position or starting point

• Determine the direction and distance to my destination

By implementing industry best practices, fostering collaboration, and promoting innovation.

• Identify and implement industry best practices to improve efficiency and quality.

• Collaborate with stakeholders to identify and address industry challenges.

• Promote innovation by encouraging experimentation and risk-taking.

• Establish a culture of continuous improvement through training and development.

• Engage with industry associations and thought leaders to stay up-to-date on trends and em...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

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 extreme value theory.

• The choice of method depends on the nature ...read more

Components required for writing a user story

• User persona

• User goal

• Acceptance criteria

• Priority

• Estimate

• Description

Attributes that should flow from policy to claims system

• Accurate policy information

• Clear coverage details

• Validated policy limits

• Proper claim adjudication

• Timely claim processing

• Effective communication with policyholders

Best practices for capturing accurate requirements

• Engage stakeholders to understand their needs

• Use clear and concise language to avoid ambiguity

• Document requirements in a structured format

• Validate requirements with stakeholders

• Prioritize requirements based on business value

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 to estimate the potential loss from credit risk

• It helps ban...read more

To measure 4 liters from 5 and 3 liter vessels, fill 3 liter vessel, pour into 5 liter vessel, refill 3 liter vessel, pour into 5 liter vessel until it is full.

• Fill the 3 liter vessel completely

• Pour the water from the 3 liter vessel into the 5 liter vessel

• Refill the 3 liter vessel

• Pour the water from the 3 liter vessel into the 5 liter vessel until it is full

I recommend a feature to schedule messages in WhatsApp.

• Users can schedule messages to be sent at a later time

• This can be useful for sending birthday wishes or reminders

• Users can also edit or cancel scheduled messages before they are sent

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 market risk and operational risk

• Basel 4 is expected to be i...read more

Yes, I have experience working in both Waterfall and Scrum models.

• I have experience working in Waterfall model, where requirements are gathered upfront and the project progresses in a linear fashion.

• I have also worked in Scrum model, where the project is divided into sprints and iterative development is done.

• In Waterfall model, I have worked on projects with well-defined scope and fixed timelines.

• In Scrum model, I have experience in daily stand-up meetings, sprint planning, a...read more

Business Analysis involves identifying business needs and finding solutions to business problems.

• Business Analysis involves understanding the structure, policies, and operations of an organization.

• It includes analyzing processes, systems, and workflows to identify areas for improvement.

• Business Analysts gather and document requirements, create business cases, and facilitate communication between stakeholders.

• They use tools such as SWOT analysis, PESTLE analysis, and data mode...read more

Cost analysis involves identifying, evaluating, and comparing the costs of a project or business process.

• Identify all costs associated with the project or process

• Evaluate the costs to determine their impact on the overall budget

• Compare the costs to similar projects or industry standards

• Use tools such as cost-benefit analysis or cost-effectiveness analysis

• Consider both direct costs (e.g. materials, labor) and indirect costs (e.g. overhead, administrative)

• Factor in any potentia...read more

The 3Cs of a user story are Card, Conversation, and Confirmation.

• Card: A user story is typically written on a physical or digital card to capture the essence of the requirement.

• Conversation: The user story should spark a conversation between the stakeholders to gather more details and clarify any doubts.

• Confirmation: The user story should have acceptance criteria that define when the story is considered complete.

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 implemented gradually over the next few years.

Process flow for booking an Uber ride for a friend

• Open the Uber app and select the 'Where to?' option

• Enter the destination and tap on the 'Ride' option

• Select the 'Someone else' option and enter your friend's name and phone number

• Confirm the ride details and request the ride

• Your friend will receive a text message with the driver's details and can track the ride in real-time

The order of execution of a SQL code is: FROM, WHERE, GROUP BY, HAVING, SELECT, ORDER BY.

• FROM clause is executed first to retrieve data from tables

• WHERE clause filters the data based on specified conditions

• GROUP BY clause groups the data based on specified columns

• HAVING clause filters the grouped data

• SELECT clause selects the columns to display

• ORDER BY clause sorts the final result set

I manage stakeholder requirements through effective communication, collaboration, prioritization, and documentation.

• Regular communication with stakeholders to understand their needs and expectations

• Collaboration with stakeholders to gather and prioritize requirements

• Documenting requirements clearly and accurately to ensure alignment and traceability

• Using tools like requirement management software to track and manage requirements

• Conducting regular reviews and validations with ...read more

The process for writing non-functional requirements involves identifying performance, security, usability, and other quality attributes.

• Identify the quality attributes that are important for the project

• Define specific criteria for each quality attribute

• Ensure that the requirements are measurable and testable

• Document the non-functional requirements in a clear and concise manner

Waterfall is a linear approach while Agile is iterative. Both have pros and cons.

• Waterfall is best suited for projects with well-defined requirements and a fixed scope.

• Agile is best suited for projects with evolving requirements and a flexible scope.

• Waterfall provides a clear roadmap and is easy to manage.

• Agile allows for faster delivery and better collaboration between teams.

• Waterfall can lead to delays and cost overruns if requirements change.

• Agile can be difficult to manag...read more

Building rapport with customers involves active listening, empathy, and clear communication.

• Listen actively to their concerns and needs

• Show empathy and understanding towards their situation

• Communicate clearly and transparently about the project or product

• Be responsive and available for questions or concerns

• Establish trust through consistent follow-up and follow-through

• Find common ground and shared goals to build a sense of partnership

• Personalize interactions by remembering de...read more

I have extensive experience in vendor management, including contract negotiation, performance evaluation, and relationship building.

• Negotiating contracts with vendors to ensure favorable terms for the company

• Evaluating vendor performance to ensure they meet agreed upon standards

• Building strong relationships with vendors to foster collaboration and partnership

• Managing vendor relationships to address any issues or concerns that may arise

• Implementing vendor management best pract...read more

Yes, RACI matrix is a tool used to clarify roles and responsibilities in a project or process.

• RACI stands for Responsible, Accountable, Consulted, and Informed.

• It helps in defining who is responsible for what tasks, who is accountable for the overall success, who needs to be consulted before decisions are made, and who needs to be kept informed.

• For example, in a software development project, the Business Analyst might be responsible for gathering requirements (R), the Project...read more

Use SQL query to join tables on sales and survey

• Use JOIN keyword to combine tables based on a common column

• Specify the columns to select from each table

• Example: SELECT * FROM sales JOIN survey ON sales.id = survey.sales_id

A credit report contains information about a person's credit history and financial behavior.

• The main components of a credit report include personal information, credit accounts, payment history, public records, and inquiries.

• Personal information includes the person's name, address, social security number, and employment history.

• Credit accounts show the person's credit cards, loans, and other debts, as well as their payment history and current balances.

• Payment history shows wh...read more

Functional requirements describe what the system should do, while non-functional requirements describe how the system should perform.

• Functional requirements specify the behavior of the system, such as user interactions or data processing.

• Non-functional requirements specify the constraints or qualities the system must have, such as performance, security, or scalability.

• Example of functional requirement: The system must allow users to create an account and log in.

• Example of non...read more

Mandatory tags in MT and corresponding in MX

• Mandatory tags in MT (Machine Translation) refer to the tags that must be present in the source text for accurate translation.

• These tags provide context and structure to the text, ensuring that the translated output is correct and coherent.

• In MX (Machine eXtended), the corresponding mandatory tags are used to define the structure and formatting of the translated text.

• These tags ensure that the translated content is displayed correct...read more

Loss ratio is a key performance indicator used in insurance to measure the profitability of underwriting. The formula is (Incurred Losses + Loss Adjustment Expenses) / Earned Premiums.

• Loss ratio is a ratio used in insurance to assess the profitability of underwriting.

• The formula for loss ratio is (Incurred Losses + Loss Adjustment Expenses) / Earned Premiums.

• A lower loss ratio indicates better underwriting performance, while a higher ratio may suggest potential issues with cl...read more

QS is the quantity supplied in the market while surplus is the excess of quantity supplied over quantity demanded.

• QS refers to the amount of a good or service that producers are willing to sell at a given price

• Surplus occurs when the quantity supplied exceeds the quantity demanded at a given price

• Surplus can lead to lower prices as producers try to sell off excess inventory

• QS is a key factor in determining market equilibrium

Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and impact of unfortunate events.

• Identifying potential risks that could impact a project or organization

• Assessing the likelihood and impact of each risk

• Prioritizing risks based on their potential impact and likelihood

• Developing strategies to mitigate or avoid risks

• Monitoring and contr...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 losses can have a significant impact on businesses and econo...read more

The mortgage lending process involves several steps from application to closing.

• 1. Application: Borrower submits application with financial information.

• 2. Pre-approval: Lender evaluates borrower's creditworthiness and pre-approves the loan.

• 3. Property appraisal: Lender assesses the value of the property being purchased.

• 4. Underwriting: Lender reviews all documentation and makes a final decision on the loan.

• 5. Approval: Loan is approved and terms are finalized.

• 6. Closing: Borr...read more

The project management process is a series of steps taken to plan, execute, monitor, and close a project.

• Initiation: Define the project, set goals, and identify stakeholders.

• Planning: Create a project plan, schedule, and budget.

• Execution: Implement the project plan and manage resources.

• Monitoring and Controlling: Track progress, identify issues, and make adjustments.

• Closing: Finalize all project activities and deliverables.

Inner join combines only matching rows from two tables, while outer join includes all rows from one table and only matching rows from the other.

• Inner join only includes rows that have matching values in both tables

• Outer join includes all rows from one table and only matching rows from the other

• Example: Inner join would return only customers who have made a purchase, while outer join would return all customers with their purchases if available

Wet scrubber is a pollution control device that removes pollutants from industrial exhaust streams.

• The exhaust stream is passed through a scrubbing liquid, usually water, which traps the pollutants.

• The scrubbing liquid is then collected and treated to remove the pollutants.

• Wet scrubbers are commonly used in industries such as chemical, pharmaceutical, and power generation.

• Examples of pollutants removed by wet scrubbers include sulfur dioxide, nitrogen oxides, and particulate ...read more

Use SQL query to find longest streak of orders by customer

• Use window functions like ROW_NUMBER() to assign a sequential number to each order for each customer

• Partition the data by customer and order the rows by order date

• Calculate the difference between the sequential numbers to identify streaks of consecutive orders

• Select the maximum streak length for each customer

Agile and Scrum are project management methodologies. SQL and API are technical skills.

• Agile and Scrum are iterative and incremental approaches to software development.

• SQL is a programming language used to manage and manipulate relational databases.

• API stands for Application Programming Interface and is a set of protocols and tools for building software applications.

• Agile and Scrum emphasize collaboration, flexibility, and continuous improvement.

• SQL is used to retrieve data f...read more