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PRMIA 8008 Exam Overview:
| Certification Vendor: | PRMIA |
|---|---|
| Exam Name: | PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP (2015 Edition) |
| Exam Number: | 8008 |
| Related Certifications: | PRM Exam I PRM Exam II PRM Exam IV |
| Available Languages: | English |
| Exam Format: | Multiple choice |
| Recommended Training: | PRMIA Official Study Resources |
| Exam Registration: | PRMIA Certification Registration |
| Sample Questions: | PRMIA 8008 Sample Questions |
| Exam Way: | Computer-based exam (online or authorized test centers) |
| Pre Condition: | Typically requires completion of PRM Exam I and PRM Exam II before attempting Exam III as part of PRM designation requirements. |
| Official Syllabus URL: | https://www.prmia.org |
PRMIA 8008 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Operational Risk | - Operational risk types and sources - Operational risk management techniques
|
| Market Risk | - Interest rate, equity, FX, and commodity risk - Market risk measurement techniques
|
| Risk Management Frameworks | - Enterprise risk management principles
|
| Funds Transfer Pricing (FTP) | - FTP methodologies - Internal pricing of funds and liquidity allocation |
| Asset-Liability Management (ALM) | - Interest rate risk in the banking book (IRRBB) - Liquidity risk management |
| Counterparty Risk | - Counterparty credit exposure - Derivatives credit risk considerations - Netting and collateral management |
| Credit Risk | - Credit portfolio risk - Credit risk measurement and modeling
|
PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition Sample Questions:
A bank prices retail credit loans based on median default rates. Over the long run, it can expect:
- A. Correct pricing of risk in the retail credit portfolio
- B. A reduction in the rate of defaults
- C. Overestimation of risk and overpricing, leading to loss of market share
- D. Underestimation and therefore underpricing of risk in it retail portfolio
Correct Answer: D 🗳️
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Which of the following are valid approaches for extreme value analysis given a dataset:
I. The Block Maxima approach
II. Least squares approach
III. Maximum likelihood approach
IV. Peak-over-thresholds approach
- A. All of the above
- B. I, III and IV
- C. I and IV
- D. II and III
Correct Answer: C 🗳️
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Which of the following credit risk models relies upon the analysis of credit rating migrations to assess credit risk?
- A. KMV's EDF based approach
- B. The contingent claims approach
- C. The actuarial approach
- D. The CreditMetrics approach
Correct Answer: D 🗳️
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What would be the correct order of steps to addressing data quality problems in an organization?
- A. Assess the current state, design the future state, determine gaps and the actions required to be implemented to eliminate the gaps
- B. Design the future state, perform a gap analysis, analyze the current state and implement the future state
- C. Articulate goals, do a 'strategy-fit' analysis and plan for action
- D. Call in external consultants
Correct Answer: A 🗳️
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The estimate of historical VaR at 99% confidence based on a set of data with 100 observations will end up being:
- A. the extrapolated returns of the last 1.64 observations
- B. the worst single observation in the data set
- C. the weighted average of the top 2.33 observations
- D. None of the above
Correct Answer: B 🗳️
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By Rodney
