Sample interview questions: How do you evaluate the impact of changes in geopolitical risks on treasury operations?
Sample answer:
Evaluation of Geopolitical Risks on Treasury Operations
- Monitor geopolitical events and news: Stay abreast of current events, diplomatic tensions, and potential conflicts that may impact global markets.
- Analyze potential financial implications: Assess the impact of geopolitical risks on currency fluctuations, interest rates, and commodity prices.
- Stress-test treasury models: Run hypothetical scenarios to simulate potential market disruptions caused by geopolitical events and measure their impact on treasury operations.
- Develop contingency plans: Create plans to mitigate the financial impact of geopolitical events, including accessing alternative funding sources, hedging currency risk, and adjusting liquidity management strategies.
- Collaborate with risk and compliance teams: Work closely with risk and compliance teams to assess the potential reputational and regulatory risks associated with geopolitical events.
- Engage with external stakeholders: Maintain relationships with geopolitical analysts, economic advisors, and government officials to gain insights and perspectives on potenti… Read full answer