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Exam SCR topic 1 question 56 discussion

Actual exam question from GARP's SCR
Question #: 56
Topic #: 1
[All SCR Questions]

A global investment bank expands its risk department to include climate risk assessment. Senior management directs the department to implement approaches for evaluating how climate change affects traditional risk types. A risk manager recommends risk metrics for key risk types that measure physical and transition risk impacts.
To measure credit risk, which metric should the analyst recommend?

  • A. Level of company preparedness
  • B. Bid-ask spread
  • C. Loan-to-deposit ratio
  • D. Loss given default
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

Comments

Chosen Answer:
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qingyang111000
7 months, 3 weeks ago
Selected Answer: D
LGD for credit risk
upvoted 1 times
...
2126mmtsdm
1 year, 1 month ago
Selected Answer: D
LGD 100%
upvoted 1 times
...
Gs2410
1 year, 1 month ago
Selected Answer: D
LGD is correct for sure
upvoted 1 times
...
Karnitschnig
1 year, 7 months ago
Selected Answer: D
Level of preparedness is for operational risk. LGD is for credit risk
upvoted 3 times
...
Bianca_Mene
1 year, 7 months ago
Credit Risk Metrics —>LGD
upvoted 3 times
...
goodforme
1 year, 8 months ago
Selected Answer: D
Operational risk -> level of company preparedness Credit risk -> Loss given default (LGD)
upvoted 4 times
...
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A (35%)
C (25%)
B (20%)
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