# FRM Part I interview scorecard

Candidate: ______  Interviewer: ______  Date: ______

| # | Question | Listen for | Score 1 to 4 |
|---|---|---|---|
| 1 | How would you explain risk appetite to a board? | The amount and type of risk the firm will take to meet its goals, with limits that can be measured and monitored. | |
| 2 | Pick a well-known risk failure. What control would have caught it? | A real case, the root cause, and a specific control, not a general lesson. | |
| 3 | How do you check a model's assumptions before you trust it? | State them, test them against data, run sensitivity analysis, and know where the model breaks. | |
| 4 | When does correlation mislead you? | When relationships are not linear, when regimes change, and when correlations jump in a crisis. | |
| 5 | How can a futures hedge still lose money? | Basis risk, mismatched dates or amounts, and cash strain from margin calls. | |
| 6 | Walk me through a plain interest rate swap. | Fixed against floating payments on a notional that is not exchanged, and the counterparty risk that remains. | |
| 7 | What are the limits of value at risk? | It says nothing about losses beyond the threshold and rests on assumptions, so pair it with expected shortfall and stress tests. | |
| 8 | How would you stress test a portfolio? | Historical and hypothetical scenarios, reverse stress tests, and actions agreed in advance. | |

Source: https://credentialpress.com/guides/frm-part-i-interview-questions