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PRMIA 8010 Exam Dumps

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Description

Exam Name: Operational Risk Manager (ORM) Exam
Exam Code: 8010
Related Certification(s): PRMIA Operational Risk Management ORM Certification
Certification Provider: PRMIA
Number of 8010 practice questions in our database: 240
Expected 8010 Exam Topics, as suggested by PRMIA :

  • Module 1: Classic Credit Products: This section of the exam covers traditional lending instruments like loans and bonds used by banks and financial institutions.
  • Module 2: Classic Credit Life Cycle: This section covers the stages a credit product goes through, from origination to maturity or default.
  • Module 3: Classic Credit Risk Methodology: This section covers conventional approaches to assessing and quantifying the risk of borrower default.
  • Module 4: Credit Derivatives and Securitization: In this section, the topics covered include financial instruments that transfer credit risk and pool debt-based assets into tradable securities.
  • Module 5: Modern Credit Risk Modeling: This section covers advanced statistical and mathematical techniques for measuring and managing credit risk.
  • Module 6: Credit Portfolio Management: This section covers strategies for optimizing the overall risk and return of a collection of credit exposures.
  • Module 7: Basics of Counterparty Risk: This section covers fundamental concepts related to the risk of a counterparty failing to fulfill their contractual obligations.
  • Module 8: Risk Mitigation: This section covers techniques and tools used to reduce or transfer various types of financial risks.
  • Module 9: Credit Valuation Adjustment (CVA): This section covers an adjustment to the fair value of derivatives to account for counterparty credit risk.
  • Module 10: CVA-related Aspects: This section covers additional considerations and implications associated with Credit Valuation Adjustment.
  • Module 11: Managing Counterparty Risk and CVA: This section covers strategies and practices for controlling exposure to counterparty default and optimizing CVA.

Description

Exam Name: Operational Risk Manager (ORM) Exam
Exam Code: 8010
Related Certification(s): PRMIA Operational Risk Management ORM Certification
Certification Provider: PRMIA
Number of 8010 practice questions in our database: 240
Expected 8010 Exam Topics, as suggested by PRMIA :

  • Module 1: Classic Credit Products: This section of the exam covers traditional lending instruments like loans and bonds used by banks and financial institutions.
  • Module 2: Classic Credit Life Cycle: This section covers the stages a credit product goes through, from origination to maturity or default.
  • Module 3: Classic Credit Risk Methodology: This section covers conventional approaches to assessing and quantifying the risk of borrower default.
  • Module 4: Credit Derivatives and Securitization: In this section, the topics covered include financial instruments that transfer credit risk and pool debt-based assets into tradable securities.
  • Module 5: Modern Credit Risk Modeling: This section covers advanced statistical and mathematical techniques for measuring and managing credit risk.
  • Module 6: Credit Portfolio Management: This section covers strategies for optimizing the overall risk and return of a collection of credit exposures.
  • Module 7: Basics of Counterparty Risk: This section covers fundamental concepts related to the risk of a counterparty failing to fulfill their contractual obligations.
  • Module 8: Risk Mitigation: This section covers techniques and tools used to reduce or transfer various types of financial risks.
  • Module 9: Credit Valuation Adjustment (CVA): This section covers an adjustment to the fair value of derivatives to account for counterparty credit risk.
  • Module 10: CVA-related Aspects: This section covers additional considerations and implications associated with Credit Valuation Adjustment.
  • Module 11: Managing Counterparty Risk and CVA: This section covers strategies and practices for controlling exposure to counterparty default and optimizing CVA.

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Q1. Which of the following statements are true: 1. A transition matrix is the probability of a security migrating from one rating class to another during its lifetime. 2. Marginal default probabilities refer to probabilities of default in a particular period, given survival at the beginning of that period. 3. Marginal default probabilities will always be greater than the corresponding cumulative default probability. 4. Loss given default is generally greater when recovery rates are low.

A.1 and 3

B. 1, 3 and 4

C. 2 and 4

D. 1 and 4

Correct Answer: C

Q2. The probability of default of a security during the first year after issuance is 3%, that during the second and third years is 4%, and during the fourth year is 5%. What is the probability that it would not have defaulted at the end of four years from now?

A.12.00%

B. 88.53%

C. 88.00%

D. 84.93%

Correct Answer: D

Q3. For credit risk calculations, correlation between the asset values of two issuers is often proxied with:

A.Credit migration matrices

B. Transition probabilities

C. Equity correlations

D. Default correlations

Correct Answer: C

Q4. Which of the following are valid approaches for extreme value analysis given a dataset: 1. The Block Maxima approach 2. Least squares approach 3. Maximum likelihood approach 4. Peak-over-thresholds approach

A.2 and 3

B. 1, 3 and 4

C. 1 and 4

D. All of the above

Correct Answer: C

Q5. Which of the following statements are true: 1. A high score according to Altman's Z-Score methodology indicates a lower default risk 2. A high score according to the Probit or Logit models indicates a higher default risk 3. A high score according to Altman's Z-Score methodology indicates a higher default risk 4. A high score according to the Probit or Logit models indicates a lower default risk

A.3 and 4

B. 2 and 3

C. 1 and 4

D. 1 and 2

Correct Answer: D

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