Free PRMIA 8010 Exam Questions
Absolute Free 8010 Exam Practice for Comprehensive Preparation
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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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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?
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Question 2
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Whichof the following statements are true in relation to Historical Simulation VaR?I. Historical Simulation VaR assumes returns are normally distributed but have fat tailsII. It uses full revaluation, as opposed to delta or delta-gamma approximationsIII. Acorrelation matrix is constructed using historical scenariosIV. It particularly suits new products that may not have a long time series of historical data available
Answer: A
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Question 3
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Which of the following is not a limitation of the univariate Gaussian model to capture the codependence
structure between risk factros used for VaR calculations?
Answer: C
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Which of the following is not a limitation of the univariate Gaussian model to capture the codependence
structure between risk factros used for VaR calculations?
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Question 4
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Which of the following decisions need to be made as part of laying down a system for calculating VaR:I. The confidence level and horizonII. Whether portfolio valuation is based upon a delta-gamma approximation or a full revaluationIII. Whether the VaR is to be disclosed in the quarterly financial statementsIV. Whether a 10 day VaR will be calculated based on 10-day return periods, or for 1-day and scaled to 10days
Answer: C
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Question 5
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Which of the following is true for the actuarial approach to credit risk modeling (CreditRisk+):
Answer: C
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Which of the following is true for the actuarial approach to credit risk modeling (CreditRisk+):