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Ch 2 · Risk ManagementCA Final AFM

4 levels · 64 questions · free

Getting the game ready…

How to play

Mixed questions from this chapter — fill the missing term, sort into the right box, match the pairs, order the steps, or catch the formula that is wrong.

What this drills

Risk theory is asked as “identify it, then manage it” — two lists per risk. And VaR is asked as a definition trap: it is a MINIMUM extreme loss, not a maximum.

  • Strategic, compliance, operational and financial risk
  • Counterparty, political, interest rate, currency and liquidity risk
  • Systematic vs unsystematic risk
  • Value at Risk

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Ch 2 · Risk Management — questions

What does a one-day 5% VaR of ₹1 million actually mean?+

That there is a 0.05 probability the portfolio falls in value by MORE than ₹1 million over one day — roughly one day in twenty. It is a minimum extreme loss: VaR never states an ultimate maximum. A loss exceeding it is called a VaR breach.