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This question evaluates your ability to help banks address new and complex risks, such as those related to climate change. Recruiters assess your foresight, analytical skills, and ability to integrate sustainability into risk management. Common pitfalls include not addressing the financial impact of climate risks or failing to propose actionable strategies. A strong answer demonstrates a structured approach, including risk identification, scenario analysis, and collaboration with sustainability experts. Preparation involves studying climate-related financial risk frameworks like TCFD.
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