PRMIA 8008 real exam prep : PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition

  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
  • Updated: Oct 13, 2026
  • Q&As: 359 Questions and Answers

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8008 exam dumps

PRMIA 8008 Exam Syllabus Topics:

SectionObjectives
Topic 1: Market Risk- Market Risk Models and VAR
- Market Risk Measurement Techniques
Topic 2: Funds Transfer Pricing (FTP)- FTP Framework and Methodologies
- FTP Implementation and Governance
Topic 3: Asset-Liability Management (ALM)- Interest Rate Risk in the Banking Book
- Liquidity and Funding Risk Management
Topic 4: Risk Management Frameworks- Enterprise Risk Management Principles
- Governance and Risk Culture
Topic 5: Counterparty Risk- Counterparty Exposure and Collateral Management
- Pre-Settlement and Settlement Risk
Topic 6: Operational Risk- Operational Risk Measurement and Controls
- Operational Risk Identification and Assessment
Topic 7: Credit Risk- Credit Risk Mitigation and Management
- Credit Risk Analysis and Measurement

PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition Sample Questions:

Question #1

Calculate the 1-year 99% credit VaR of a portfolio of two bonds, each with a value of $1m, and the probability of default of 1% each over the next year. Assume the recovery rate to be zero, and the defaults of the two bonds to be uncorrelated to each other.

  • A. 980000
  • B. 1980000
  • C. 0
  • D. 20000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

For a group of assets known to be positively correlated, what is the impact on economic capital calculations if we assume the assets to be independent (or uncorrelated)?

  • A. Economic capital estimates remain the same
  • B. Estimates of economic capital go down
  • C. The impact on economic capital cannot be determined in the absence of volatility information
  • D. Estimates of economic capital go up
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

For a bank using the advanced measurement approach to measuring operational risk, which of the following brings the greatest 'model risk' to its estimates:

  • A. Choice of an incorrect distribution for loss event frequencies
  • B. Insufficient number of simulations when building the loss distribution
  • C. Aggregation risk, from selecting an incorrect value of estimated correlations between different operational risk estimates
  • D. Choice of incorrect parameters for loss severity distributions
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

A bank holds a portfolio of corporate bonds. Corporate bond spreads widen, resulting in a loss of value for the portfolio. This loss arises due to:

  • A. Counterparty risk
  • B. Credit risk
  • C. Liquidity risk
  • D. Market risk
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

A portfolio has two loans, A and B, each worth $1m. The probability of default of loan A is 10% and that of loan B is 15%. The probability of both loans defaulting together is 1%. Calculate the expected loss on the portfolio.

  • A. 250000
  • B. 1000000
  • C. 500000
  • D. 240000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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