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PRMIA 8008 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Credit Risk | - Credit Risk Mitigation and Management - Credit Risk Analysis and Measurement |
| Risk Management Frameworks | - Enterprise Risk Management Principles - Governance and Risk Culture |
| Market Risk | - Market Risk Measurement Techniques - Market Risk Models and VAR |
| Funds Transfer Pricing (FTP) | - FTP Framework and Methodologies - FTP Implementation and Governance |
| Counterparty Risk | - Counterparty Exposure and Collateral Management - Pre-Settlement and Settlement Risk |
| Asset-Liability Management (ALM) | - Interest Rate Risk in the Banking Book - Liquidity and Funding Risk Management |
| Operational Risk | - Operational Risk Identification and Assessment - Operational Risk Measurement and Controls |
PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition Sample Questions:
Which of the formulae below describes incremental VaR where a new position 'm' is added to the portfolio?
(where p is the portfolio, and V_i is the value of the i-th asset in the portfolio. All other notation and symbols have their usual meaning.) A)
B)
C)
D)
- A. Option D
- B. Option B
- C. Option A
- D. Option C
Correct Answer: C 🗳️
Explanation: Only visible for TrainingDump members. You can sign-up / login (it's free).
Which of the following is not an example of a risk concentration?
- A. Large combined positions in assets affected by different risk factors that are highly correlated
- B. Origination of a large number of SIVs with exposures to the same asset class, where the SIVs are separate legal entities without recourse to the originator
- C. Location of a portfolio's assets in a single country but spread across different industries
- D. Material amounts of treasury obligations held as collateral provided by a single counterparty
Correct Answer: D 🗳️
Explanation: Only visible for TrainingDump members. You can sign-up / login (it's free).
Which of the following is not one of the 'three pillars' specified in the Basel accord:
- A. National regulation
- B. Market discipline
- C. Supervisory review
- D. Minimum capital requirements
Correct Answer: A 🗳️
Explanation: Only visible for TrainingDump members. You can sign-up / login (it's free).
Which of the following statements are true:
I. Liquidity risks during time of crisis may be exacerbated by large collateral calls continuing over a period of time.
II. Stress tests are always separately modeled from VaR computations which cannot deal with stress scenarios of the kind considered in stress tests.
III. A maximum loss scenario considers the maximum possible loss given a 'plausibility constraint' that is based upon the joint probability of such a loss happening
- A. I and II
- B. I and III
- C. II and III
- D. I, II and III
Correct Answer: B 🗳️
Explanation: Only visible for TrainingDump members. You can sign-up / login (it's free).
Which of the following are a CRO's responsibilities:
I. Statutory financial reporting
II. Reporting to the audit committee
III. Compliance with risk regulatory standards
IV. Operational risk
- A. I and II
- B. III and IV
- C. II and IV
- D. All of the above
Correct Answer: B 🗳️
Explanation: Only visible for TrainingDump members. You can sign-up / login (it's free).
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