How to answer this Situational interview question about Risk Management for Senior-Level Asset Manager?

Can you describe a time when you identified and mitigated a significant investment risk?

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Asset Manager

Situational

Asked at

JPMorgan Chase

Difficulty :

Hard

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Explanation

This question evaluates your risk management skills and ability to protect clients’ investments. Recruiters want to see how you identify risks, assess their impact, and implement strategies to mitigate them. A strong answer includes a specific example, the steps you took, and the results. Avoid vague descriptions or failing to demonstrate the impact of your actions.

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Answer Example

While managing a high-net-worth client’s portfolio, I identified overexposure to a single sector during a market downturn. I conducted a sector risk analysis and recommended reallocating funds to more diversified assets, including defensive stocks and bonds. This action reduced the client’s portfolio volatility by 15% and preserved capital during the downturn, ensuring long-term stability.

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