Risk interview questions?

Not sure if this is the right place to post this.. but have an upcoming SA superday at a BB for their risk division. It's unspecified what kind of risk it is (credit vs. market, etc.) but what kinds of technical questions can I expect? Are they going to ask about all kinds of risk generally? Any help appreciated.

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If it's credit risk then be prepared to walk through three financial statements, which one would you look at the most for credit, and understand the most used ratios in credit which are:

Current Ratio

Debt/Equity

CF/Interest Expense

CF/Current Debt Obligations - it's measuring EBITDA. Is this company generating enough cash to cover their interest expense and debt for the current year?

PP&E/Total Assets - basically measuring how much collateral the company can post

Others you can look up the most used covenants

Credit risk doesn't really care about projecting out free cash flows in the future like IB does. It's more about understanding how well a company has performed in the past and how they are performing today. Market risk is similar but just focuses more on macroeconomic conditions and how to hedge.

 

Thanks. How do you think they would approach the interview? Will they be questioning me about each type of risk and their respective technicals? 

 

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