60+ 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

The angle between the minute and hour hands of a clock at 2:20 is 50 degrees.

• Calculate the angle formed by the hour hand from 12 o'clock to the current time (2:20)

• Calculate the angle formed by the minute hand from 12 o'clock to the current time (20 minutes past the hour)

• Subtract the smaller angle from the larger angle to get the angle between the minute and hour hands

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

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

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

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

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

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

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

Provisioning norms for NPA and SMA

• NPA stands for Non-Performing Assets and SMA stands for Special Mention Accounts

• Provisioning norms are guidelines set by the Reserve Bank of India for banks to maintain a certain level of provisions for their bad loans

• The provisioning norms for NPA and SMA differ based on the age and classification of the accounts

• For example, for NPA accounts, banks need to make a provision of 15-100% depending on the age of the account and the type of loan

• Si...read more

I prioritize change requests based on impact, feasibility, and urgency.

• Evaluate the impact of the change request on project scope, timeline, and budget.

• Assess the feasibility of implementing the change within existing constraints.

• Prioritize change requests based on urgency and potential benefits.

• Communicate with stakeholders to gather requirements and manage expectations.

• Document all change requests and their outcomes for future reference.

DCO sessions are collaborative workshops where stakeholders and team members gather to define and refine requirements.

• Prepare an agenda and invite key stakeholders and team members

• Facilitate discussions to gather requirements and ensure all perspectives are considered

• Document decisions and action items for follow-up

• Encourage active participation and collaboration among participants

• Use visual aids such as whiteboards or sticky notes to capture ideas and requirements

• Follow up w...read more

A Business Requirement Document (BRD) is a formal document that outlines the requirements of a project or system.

• BRD describes what the business wants to achieve with a project

• It includes functional and non-functional requirements

• BRD serves as a guide for the development team to understand the goals and scope of the project

• It helps in ensuring that the final product meets the business needs and objectives

Requirements Traceability Matrix is a document that links requirements throughout the development process.

• It is used to ensure that all requirements are met and to track changes throughout the project.

• It helps in identifying the source of each requirement and the status of implementation.

• It provides a way to trace back to the origin of each requirement and helps in impact analysis.

• Example: If a requirement changes, the matrix can show which design, test cases, and other eleme...read more

Cover payment is a payment made by a bank on behalf of its customer to ensure a transaction is completed.

• Cover payment is used when a customer does not have sufficient funds to complete a transaction.

• It is typically used in international trade to ensure timely payment.

• The bank makes the payment on behalf of the customer and then recovers the funds from the customer later.

• Cover payment can also refer to a payment made by an insurance company to cover medical expenses.

• In this c...read more

A cover payment is a type of payment used in international transactions to facilitate the transfer of funds between banks.

• A cover payment involves two banks: the remitting bank and the beneficiary bank.

• The remitting bank initiates the payment on behalf of its customer, who is the sender of the funds.

• The remitting bank sends the cover payment message to the beneficiary bank, which is responsible for crediting the funds to the recipient's account.

• The cover payment message conta...read more

Serial payment flow involves a sequence of payments made in a specific order.

• Serial payment flow follows a predetermined sequence of payments.

• Each payment is made after the previous payment has been completed.

• The flow can be automated or manual, depending on the payment system.

• Examples include installment payments, subscription fees, and loan repayments.

API clients can pose challenges due to varying levels of technical expertise and understanding of the API.

• Different API clients may have different levels of technical expertise, leading to misunderstandings or misinterpretations of the API documentation.

• API clients may not fully understand the capabilities and limitations of the API, resulting in inefficient or incorrect usage.

• Managing multiple API clients can be complex, especially when updates or changes to the API are made...read more

Business analysts use various tools to analyze data and communicate with stakeholders.

• Microsoft Excel for data analysis and reporting

• Jira for project management and tracking

• Lucidchart for creating process flow diagrams

• Tableau for data visualization

• Confluence for documentation and collaboration

Important checklist in data migration

• Assess the current data landscape

• Identify and prioritize data to be migrated

• Ensure data quality and integrity

• Plan for data mapping and transformation

• Test and validate the migration process

• Implement data migration in phases

• Monitor and troubleshoot during migration

• Document the migration process

I have achieved significant improvements in business processes and successfully led cross-functional teams.

• Implemented a new project management system that increased efficiency by 30%

• Led a team of analysts to identify cost-saving opportunities resulting in $1 million in annual savings

• Developed and implemented a data-driven strategy that improved customer retention by 15%

• Successfully managed the implementation of a new CRM system across multiple departments