Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. GARP
  5. ICBRR

GARP ICBRR Exam
International Certificate in Banking Risk and Regulation (ICBRR) (Page 5 )

Updated On: 1-Feb-2026
Page 5 of 70
PDF with 342 Questions

A credit portfolio manager analyzes a large retail credit portfolio.
Which of the following factors will represent typical disadvantages of market-linked credit risk drivers?

I) Need to supply a large number of input parameters to the model
II) Slow computation speed due to higher simulation complexity
III) Non-linear nature of the model applicable to a specific type of credit portfolios
IV) Need to estimate a large number of unknown variable and use approximations

  1. I
  2. I, II
  3. II, III
  4. III, IV

Answer(s): B



ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use to finance their own lending. Individually, each of the mortgage companies have an exposure at default (EAD) of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were modeled as independent risks, the actual probability would be underestimated by:

  1. 1%
  2. 2%
  3. 3%
  4. 4%

Answer(s): D



ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use to finance their own lending. Individually, each of the mortgage companies has an exposure at default (EAD) of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were modeled as independent risks, what would be the probability of a cumulative $40 million loss from these two mortgage borrowers?

  1. 0.01%
  2. 0.1%
  3. 1%
  4. 10%

Answer(s): C



According to the largest global poll of foreign exchange market participants, which one of the following four global financial institutions was the most active participant in the global foreign exchange market?

  1. Citibank
  2. UBS AG
  3. Deutsche Bank
  4. Barclays Capital

Answer(s): C



In analyzing market option pricing dynamics, a risk manager evaluates option value changes throughout the entire trading day.
Which of the following factors would most likely affect foreign exchange option values?

I) Change in the value of the underlying
II) Change in the perception of future volatility
III) Change in interest rates
IV) Passage of time

  1. I, II
  2. I, II, III
  3. II, III
  4. I, II, III, IV

Answer(s): D



Viewing page 5 of 70
Viewing questions 21 - 25 out of 342 questions



Post your Comments and Discuss GARP ICBRR exam prep with other Community members:

Join the ICBRR Discussion