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NEW QUESTION: 1
A credit analyst wants to determine if her bank is taking too much credit risk. Which one of the following four
strategies will typically provide the most convenient approach to quantify the credit risk exposure for the
bank?
A. Assessing aggregate exposure at default at various time points and at various confidence levels
B. Using stress testing techniques to forecast underlying macroeconomic factors and bank's idiosyncratic
risks
C. Simplifying individual credit exposures so that they can be combined into a simplified expression of
portfolio risk for the bank
D. Analyzing distribution of bank's credit losses and mapping credit risks at various statistical levels
Answer: A

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