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: Jan 14, 2026
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Rated: 4.9 |
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Online Users: 484
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Question 1
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Which of the following is true in relation to the application of Extreme Value Theory when applied tooperational risk measurement?I. EVT focuses on extreme losses that are generally not covered by standard distribution assumptionsII. EVT considers the distribution of losses in the tailsIII. The Peaks-over-thresholds (POT) and the generalized Pareto distributions are used to model extreme valuedistributionsIV. EVT is concerned with average losses beyond a given level of confidence
Answer: C
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Question 2
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According to Basel II's definition of operational loss event types, losses due to acts by third parties intended to
defraud, misappropriate property or circumvent the law are classified as
Answer: C
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According to Basel II's definition of operational loss event types, losses due to acts by third parties intended to
defraud, misappropriate property or circumvent the law are classified as
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Question 3
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The Options Theoretic approach to calculating economic capital considers the value of capital as being
equivalent to a call option with a strike price equal to:
Answer: A
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The Options Theoretic approach to calculating economic capital considers the value of capital as being
equivalent to a call option with a strike price equal to:
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Question 4
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Which of the following statements are true:I. Credit risk and counterparty risk are synonymousII. Counterparty risk is the contingent risk from a counterparty's default in derivative transactionsIII. Counterparty risk is the risk of a loan default or the risk from moneys lent directlyIV. The exposure at default is difficult to estimate for credit risk as it depends upon market movements
Answer: C
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Question 5
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A financial institution is considering shedding a business unit to reduce its economic capital requirements.
Which of the following is an appropriate measure of theresulting reduction in capital requirements?
Answer: A
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A financial institution is considering shedding a business unit to reduce its economic capital requirements.
Which of the following is an appropriate measure of theresulting reduction in capital requirements?