Explanation

This question evaluates your ability to create a robust credit risk assessment framework for a banking client. Recruiters assess your understanding of credit risk metrics, regulatory compliance, and banking-specific challenges. Common pitfalls include failing to address measurable outcomes or not integrating risk mitigation strategies. A strong answer involves a structured approach, including data analysis, scenario modeling, and compliance alignment. Preparation involves reviewing credit risk methodologies and regulatory requirements like Basel III.

Answer Example