Free PRMIA 8010 Exam Questions
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PRMIA 8010 Exam Questions
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Provided By: PRMIA
- Exam: Operational Risk Manager (ORM)
- Certification: PRM
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Total Questions: 242
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Updated On: Mar 26, 2025
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Rated: 4.9 |
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Online Users: 484
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Question 1
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For a hypotherical UoM, the number of losses in two non-overlapping datasets is 24 and 32 respectively. The
Pareto tail parameters for the two datasets calculated using the maximum likelihood estimation method are 2
and 3. What is an estimate of the tail parameter of the combined dataset?
Answer: A
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For a hypotherical UoM, the number of losses in two non-overlapping datasets is 24 and 32 respectively. The
Pareto tail parameters for the two datasets calculated using the maximum likelihood estimation method are 2
and 3. What is an estimate of the tail parameter of the combined dataset?
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Question 2
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In respect of operational risk capital calculations, the Basel II accord recommends a confidence leveland time
horizon of
Answer: D
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In respect of operational risk capital calculations, the Basel II accord recommends a confidence leveland time
horizon of
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Question 3
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Which of the following statements are true:I.Top down approaches help focus management attention on the frequency and severity of loss events, whilebottom up approaches do not.II. Top down approaches rely upon high level data while bottom up approaches need firm specific risk data toestimate risk.III. Scenario analysis can help capture both qualitative and quantitative dimensions of operational risk.
Answer: B
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Question 4
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Which of the following carry greater counterparty risk: a forward contract on a 10 year note, or a commercial
paper carrying a AA credit rating with identicalmaturity and notional?
Answer: D
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Which of the following carry greater counterparty risk: a forward contract on a 10 year note, or a commercial
paper carrying a AA credit rating with identicalmaturity and notional?
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Question 5
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There are two bonds in a portfolio, each with a marketvalue of $50m. The probability of default of the two
bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one
year expected loss on this portfolio?
Answer: C
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There are two bonds in a portfolio, each with a marketvalue of $50m. The probability of default of the two
bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one
year expected loss on this portfolio?