Free Practice Questions for 신용위험분석사 (CRA)

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Key Facts: 신용위험분석사 (CRA) Exam

500 Points

Total composite examination score across 5 subjects (100 points each)

Korea Institute of Finance (KBI)

40% / 60%

Subject disqualification floor (과락 40점) and overall aggregate passing average (60% / 300 points)

KBI Qualifying Regulations

KRW 66,000

Official candidate examination fee for 1st Stage Written Examination

KBI Fee Schedule

5 Categories

Korean regulatory asset soundness classification tiers (정상, 요주의, 고정, 회수의문, 추정손실)

Financial Supervisory Service (FSS)

3 Stages

K-IFRS 9 Expected Credit Loss impairment classification staging

K-IFRS 9 Financial Instruments

250 Minutes

Total official examination time for 1st stage written examination

KBI Examination Rules

The Korea Credit Risk Analyst CRA (신용위험분석사) qualification is administered by the Korea Institute of Finance (KBI). The 1st stage written examination consists of 5 subjects (Statistical Analysis, Corporate Credit Risk Analysis, Loan Approval & Management, Financial Statement Analysis, and Corporate Accounting) scored out of 500 total points. Candidates must score at least 40% on each subject and achieve an aggregate 60% (300/500) passing score. This 100-question bank delivers complete coverage across quantitative risk models, Basel IRB parameterizations, loan classification, financial statement red flags, and K-IFRS accounting standards.

Sample 신용위험분석사 (CRA) Practice Questions

Try these sample questions to review concepts for the 신용위험분석사 (CRA) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In corporate credit scoring models, which continuous probability distribution is most commonly assumed for the asset value of a borrower over time in the Merton structural model (머턴 구조모형)?

A.Lognormal distribution (로그정규분포), because asset values cannot become negative and percentage returns are normally distributed

B.Standard normal distribution (표준정규분포), because firm asset values fluctuate symmetrically around zero

C.Poisson distribution (포아송분포), because asset value movements occur as discrete jump arrival counts

D.Uniform distribution (균등분포), because asset prices are equally likely across all possible positive and negative levels

Explanation: In the Merton structural credit model, the firm's underlying asset value V follows geometric Brownian motion (GBM), implying that continuously compounded asset returns are normally distributed and future asset values follow a lognormal distribution (로그정규분포). This property ensures that firm assets cannot drop below zero (reflecting limited liability).

2When modeling rare operational risk events or credit default counts within a large retail loan portfolio during a short fixed horizon, which discrete probability distribution is standardly applied?

A.Hypergeometric distribution (초기하분포)

B.Poisson distribution (포아송분포)

C.Chi-square distribution (카이제곱분포)

D.Student's t-distribution (t-분포)

Explanation: The Poisson distribution (포아송분포) models the number of rare, independent discrete events occurring within a specified time window when the individual event probability is small and the exposure pool (N) is large (CreditRisk+ portfolio framework). In this setting, the mean and variance both equal lambda (λ).

3A credit risk modeler observes that corporate bond default rates and asset returns exhibit a kurtosis (첨도) of 5.8. How should this empirical distribution be characterized relative to a standard normal distribution?

A.Platykurtic (평편첨) with thinner tails and fewer extreme losses than normal

B.Mesokurtic (중첨) identical to a normal distribution with excess kurtosis of 2.8

C.Leptokurtic (급첨 / 두터운 꼬리) with heavier tails and a higher probability of extreme default events than a normal distribution

D.Positively skewed (우측 꼬리 왜곡) without any change in tail probability

Explanation: A standard normal distribution has a kurtosis of 3 (excess kurtosis of 0). A kurtosis of 5.8 represents excess kurtosis of 2.8, indicating a leptokurtic distribution (급첨도 / fat tails). Financial credit returns typically exhibit leptokurtosis, meaning severe downside shock events occur far more frequently than predicted by a Gaussian distribution.

4In statistical hypothesis testing for credit rating migration models, what does a Type II error (제2종 오류, beta) represent in the context of credit underwriting?

A.Rejecting a creditworthy borrower because the model falsely flags them as a default risk

B.Failing to reject the null hypothesis of solvency when the borrower actually defaults (approving a bad borrower)

C.Incorrectly calculating the significance level alpha as 1 minus p-value

D.Rejecting the alternative hypothesis when the null hypothesis is true

Explanation: If the null hypothesis (H0) is that the applicant is non-defaulting (creditworthy), a Type II error (제2종 오류, β) occurs when the test fails to reject H0 even though the alternative hypothesis (the applicant defaults) is true. In bank underwriting, this corresponds to approving a high-risk borrower who subsequently defaults, causing credit losses.

5A bank conducts a two-tailed z-test on historical default rates with a 5% significance level (α = 0.05). The resulting p-value is 0.018. What is the correct statistical conclusion?

A.Fail to reject the null hypothesis because 0.018 is greater than 0.01

B.Reject the null hypothesis (H0) because the p-value (0.018) is less than the significance level (0.05)

C.Accept the null hypothesis because the test power is below 95%

D.Conclude that there is an 82% probability that the null hypothesis is true

Explanation: When the calculated p-value (유의확률) is less than the pre-specified significance level alpha (유의수준 α = 0.05), the sample evidence is statistically significant enough to reject the null hypothesis (귀무가설 기각). Here, 0.018 < 0.05, warranting rejection of H0.

6In a corporate default prediction logistic regression model (로지스틱 회귀분석), the estimated logit equation is ln(p / (1 - p)) = -3.5 + 0.8 * X1 - 1.2 * X2. What does the term p / (1 - p) represent?

A.The odds of default (부도 승산 / 오즈)

B.The hazard rate of failure (순간 위험률)

C.The cumulative distribution function of a normal distribution

D.The marginal elasticity of the independent variable

Explanation: In logistic regression, the ratio of default probability p to non-default probability (1 - p) is defined as the odds (승산 / 오즈). The natural logarithm of the odds, ln(p / (1 - p)), is the logit (로짓), which linearizes the non-linear relationship between independent variables and default probability.

7In a logistic credit rating model, the coefficient for the debt-to-equity ratio is beta_1 = 0.693. Holding other variables constant, what is the impact on the odds of default (오즈비 / Odds Ratio) for every 1-unit increase in the debt-to-equity ratio? (Note: e^0.693 ≈ 2.0)

A.The odds of default increase by approximately 69.3%

B.The odds of default double (increase by a factor of 2.0)

C.The probability of default increases by exactly 20 percentage points

D.The odds of default decrease by 50%

Explanation: In logistic regression, the odds ratio (오즈비) associated with a 1-unit change in predictor Xi is exp(βi). Here, exp(0.693) ≈ 2.0, meaning the odds of default [p / (1 - p)] multiply by 2.0 (i.e., double) for each 1-unit increase in the debt-to-equity ratio.

8When validating a multiple linear regression credit scoring model, an analyst detects high pairwise correlations among predictor variables, leading to inflated standard errors and unstable coefficients. Which diagnostic metric is most appropriate for detecting this multicollinearity (다중공선성)?

A.Durbin-Watson statistic (더빈-왓슨 통계량)

B.Variance Inflation Factor (분산팽창계수 / VIF)

C.Breusch-Pagan test (브로이쉬-페이건 검정)

D.Jarque-Bera statistic (자크-베라 통계량)

Explanation: The Variance Inflation Factor (VIF, 분산팽창계수) measures how much the variance of an estimated regression coefficient increases due to collinearity with other independent variables. A VIF exceeding 5 to 10 typically flags severe multicollinearity requiring variable elimination or transformation.

9Which metric evaluates the discriminatory power (변별력) of an internal credit rating system by measuring the maximum vertical distance between the cumulative distribution function of defaulters and non-defaulters?

A.Kolmogorov-Smirnov statistic (K-S 통계량)

B.Akaike Information Criterion (AIC)

C.R-squared (결정계수)

D.Herfindahl-Hirschman Index (HHI)

Explanation: The Kolmogorov-Smirnov (K-S) statistic measures the maximum vertical divergence between the cumulative distribution of defaulting borrowers F_D(s) and non-defaulting borrowers F_ND(s) across score cutoffs. In bank credit scoring validation, a K-S statistic above 40 indicates strong discriminatory separation.

10What is the mathematical relationship between the Gini coefficient (지니계수) and the Area Under the Receiver Operating Characteristic curve (AUC) in credit scoring validation?

A.Gini = 2 * AUC - 1

B.Gini = AUC / 2

C.Gini = 1 - AUC

D.Gini = sqrt(AUC)

Explanation: In credit rating validation, the Receiver Operating Characteristic (ROC) curve plots True Positive Rate against False Positive Rate. The Area Under the Curve (AUC) ranges from 0.5 (random guess) to 1.0 (perfect ranking). The Gini coefficient (also called the Accuracy Ratio, AR) rescales AUC to a 0 to 1 scale via Gini = 2 × AUC - 1.

About the 신용위험분석사 (CRA) Exam

The Korea Credit Risk Analyst (신용위험분석사, CRA) is South Korea's premier nationally accredited professional certification for credit risk analysis, quantitative risk modeling, and loan portfolio management. Administered by the Korea Institute of Finance (한국금융연수원 / KBI) under the supervisory framework of the Financial Services Commission (금융위원회), the CRA credential certifies advanced competency across statistical distributions and regression modeling, Basel II/III internal ratings-based (IRB) capital requirements, Probability of Default (PD) and Loss Given Default (LGD) estimations, corporate credit underwriting and loan surveillance, asset classification (건전성 분류), K-IFRS 9 Expected Credit Loss (ECL) provisioning, financial ratio and cash flow diagnostics, and K-IFRS corporate accounting standards. This 100-question practice bank provides a rigorous English-language study adaptation with authentic Korean financial terminology.

Exam sponsor: Korea Institute of Finance (한국금융연수원 / KBI) under supervisory recognition from the Financial Services Commission (금융위원회). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

250 minutes (1st Stage Written Exam)

Passing Score

Minimum 40% per subject (과락 40점) and an overall average score of at least 60% (300/500 total points)

Exam / Certification Fees

1st stage KRW 77,000; 2nd stage KRW 88,000 (KBI, checked 2026-09-20)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20%

Statistical Analysis for Risk Management (기초통계분석)

Probability distributions (normal, lognormal, Poisson, exponential), central limit theorem, hypothesis testing and confidence intervals, linear and logistic regression in credit scoring models, odds ratios and logit transformation, time series analysis (ARIMA, stationarity, autocorrelation), and risk-neutral default probability models (Merton structural credit model, distance to default DD, and reduced-form hazard rate models).

20%

Corporate Credit Risk Analysis & Basel Framework (기업신용위험분석)

Basel II/III capital adequacy framework: Standardized Approach (SA) vs Internal Ratings-Based Approach (Foundation IRB vs Advanced IRB), credit risk regulatory parameters: Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), Effective Maturity (M), asymptotic single risk factor (ASRF) formula, asset correlation rho, Risk-Weighted Assets (RWA) computation, Expected Loss (EL) vs Unexpected Loss (UL), credit migration matrices, Credit Conversion Factors (CCF), and portfolio credit risk models (CreditMetrics, CreditRisk+, KMV PortfolioManager).

20%

Loan Approval & Credit Surveillance (여신승인 및 사후관리)

Corporate credit underwriting principles, borrower screening and 5Cs of credit (Character, Capacity, Capital, Collateral, Conditions), collateral appraisal and liquidation haircut policies, corporate credit limits and exposure capping, affirmative and negative debt covenants, early warning systems (조기경보시스템), financial supervisory asset soundness classification (정상, 요주의, 고정, 회수의문, 추정손실), minimum loan loss reserve ratios, and K-IFRS 9 Expected Credit Loss (ECL) staging (Stage 1 12-month ECL, Stage 2 lifetime ECL significant increase in credit risk SICR, Stage 3 credit-impaired default).

20%

Financial Statement & Cash Flow Analysis (재무분석)

Systematic financial statement evaluation: liquidity ratios (current, quick, cash ratio), leverage and solvency ratios (debt-to-equity, debt-to-assets, liabilities to equity), profitability ratios (operating margin, ROE, ROIC), activity turnover ratios (receivables turnover, inventory turnover, cash conversion cycle), debt coverage metrics (Interest Coverage Ratio ICR, EBITDA/Interest, DSCR), cash flow statement dynamics (operating, investing, financing cash flows, Free Cash Flow to Firm FCFF, Free Cash Flow to Equity FCFE), DuPont analysis 3-stage and 5-stage decomposition, and detecting window dressing and financial statement manipulation (분식회계 유형 및 적발 기법).

20%

Corporate Accounting & Credit Evaluation (기업회계 및 결산)

Corporate financial accounting standards under K-IFRS: revenue recognition principles under K-IFRS 1115 (five-step model, performance obligations satisfied over time vs at a point in time), property, plant, and equipment (K-IFRS 1016) and asset impairment testing under K-IFRS 1036 (recoverable amount, value in use, fair value less costs of disposal), lease accounting under K-IFRS 1116 (right-of-use asset and lease liability capitalization), financial instruments under K-IFRS 1109 (amortized cost AC, FVOCI, FVPL), deferred tax accounting (K-IFRS 1012), and consolidated financial statements, non-controlling interests (NCI), and equity method accounting (K-IFRS 1028).

Preparing for the 신용위험분석사 (CRA) Exam

What You Need to Know

Passing score: Minimum 40% per subject (과락 40점) and an overall average score of at least 60% (300/500 total points)
Assessment: Question count not published by the exam provider
Time limit: 250 minutes (1st Stage Written Exam)
Exam / certification fees: 1st stage KRW 77,000; 2nd stage KRW 88,000 (KBI, checked 2026-09-20) Official sources

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신용위험분석사 (CRA): Suggested Study Strategy

1Statistical Analysis: Master normal and lognormal distributions, the logistic transformation (logit = ln(p/(1-p))), and the distinction between Merton structural models (equity as a call option on firm assets) and reduced-form intensity models.

2Corporate Credit Risk Analysis: Thoroughly practice Basel capital formulas: Expected Loss (EL = PD × LGD × EAD), Risk-Weighted Assets (RWA = 12.5 × K × EAD), and the asymptotic single risk factor (ASRF) formula with asset correlation rho.

3Loan Underwriting & Surveillance: Memorize Korean supervisory asset classification tiers and mandatory minimum provisioning rates (정상 0.85%+, 요주의 7%+, 고정 20%+, 회수의문 50%+, 추정손실 100% for general corporate exposures).

4Financial Analysis: Focus on Interest Coverage Ratio (영업이익 / 이자비용), Debt Service Coverage Ratio (DSCR), Cash Conversion Cycle (CCC), and DuPont 3-stage / 5-stage return on equity decomposition.

5Corporate Accounting: Review K-IFRS 1115 revenue milestones, K-IFRS 1116 lease liability discounting and right-of-use asset amortization, K-IFRS 1036 impairment tests (carrying amount vs recoverable amount), and K-IFRS 9 3-stage ECL models.

Frequently Asked Questions

What is the Korea Credit Risk Analyst CRA (신용위험분석사) qualification?

The Korea Credit Risk Analyst (신용위험분석사, CRA) is a prestigious national financial qualification administered by the Korea Institute of Finance (한국금융연수원 / KBI) under supervisory recognition from the Financial Services Commission (금융위원회). It certifies specialized technical competence in corporate credit risk assessment, quantitative risk modeling, credit scoring, Basel IRB capital calculations, loan underwriting, and K-IFRS financial analysis.

What is the structure of the 1st stage written CRA examination?

The 1st stage written exam consists of 5 subjects: 1) Statistical Analysis (기초통계분석), 2) Corporate Credit Risk Analysis (기업신용위험분석), 3) Loan Approval & Management (여신승인 및 사후관리), 4) Financial Statement Analysis (재무분석), and 5) Corporate Accounting (기업회계 및 결산). Each subject is scored out of 100 points, totaling 500 points.

What are the passing criteria for the 1st stage CRA exam?

Candidates must achieve at least 40 points out of 100 in each subject (the 40% disqualification floor, known as 과락) and achieve an overall weighted average of at least 60% across the 500 total points (minimum 300 points total).

What is the difference between Foundation IRB (기본 내부등급법) and Advanced IRB (고급 내부등급법) under Basel III?

Under the Foundation IRB (F-IRB) approach, banks estimate only the Probability of Default (PD) using their internal rating models, while supervisory authorities prescribe fixed values for Loss Given Default (LGD) and Exposure at Default (EAD). Under the Advanced IRB (A-IRB) approach, banks are permitted to use their own validated internal empirical models to estimate PD, LGD, EAD, and Effective Maturity (M).

How are corporate loans classified under Korean financial supervisory regulations?

Korean financial institutions classify loan assets into five soundness tiers: Normal (정상), Precautionary (요주의, overdue 1–3 months or showing credit deterioration), Substandard (고정, overdue 3+ months with collateral coverage), Doubtful (회수의문, overdue 3+ months with expected loss exceeding collateral value), and Estimated Loss (추정손실, uncollectible debt exceeding collateral value that must be written off).

Is this question bank an official publication of the Korea Institute of Finance?

No. This question bank is an independent English-language MCQ study adaptation authored by OpenExamPrep to assist bilingual risk professionals, bank underwriters, and financial analysts in preparing for the examination.