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PRMIA 8008 Exam Braindumps - in .pdf Free Demo

  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
  • Last Updated: Sep 19, 2026
  • Q & A: 359 Questions and Answers
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  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
  • Last Updated: Sep 19, 2026
  • Q & A: 359 Questions and Answers
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PRMIA 8008 Exam Syllabus Topics:

SectionObjectives
Topic 1: Credit Risk- Credit portfolio risk
- Credit risk measurement and modeling
  • 1. Exposure at default (EAD)
    • 2. Loss given default (LGD)
      • 3. Probability of default (PD)
        Topic 2: Funds Transfer Pricing (FTP)- Internal pricing of funds and liquidity allocation
        - FTP methodologies
        Topic 3: Risk Management Frameworks- Risk measurement and reporting frameworks
        - Enterprise risk management principles
        • 1. Risk governance structure
          • 2. Risk identification and assessment processes
            • 3. Risk appetite and tolerance
              Topic 4: Asset-Liability Management (ALM)- Liquidity risk management
              - Interest rate risk in the banking book (IRRBB)
              Topic 5: Counterparty Risk- Counterparty credit exposure
              - Derivatives credit risk considerations
              - Netting and collateral management
              Topic 6: Market Risk- Interest rate, equity, FX, and commodity risk
              - Market risk measurement techniques
              • 1. Value at Risk (VaR)
                • 2. Stress testing and scenario analysis
                  Topic 7: Operational Risk- Operational risk types and sources
                  - Operational risk management techniques
                  • 1. Risk and control self-assessment (RCSA)
                    • 2. Key risk indicators (KRI)
                      • 3. Loss event data collection

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

                        Question #1

                        Which of the following statements is true?

                        • A. Under times of liquidity stress, both prepayments of loans extended and expected withdrawals from on-demand deposits will decrease
                        • B. For an issuer of life insurance policies, longevity risk can lead to reserves falling short of payments due
                        • C. Deterioration in the balance sheets of key counterparties is a concern for a liquidity manager even though it may not immediately affect a firm
                        • D. Only the drawn portions of credit facilities extended to clients by a bank count towards its liquidity exposure
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

                        Explanation: Only visible for DumpTorrent members. You can sign-up / login (it's free).

                        Question #2

                        There are two bonds in a portfolio, each with a market value of $50m. The probability of default of the two bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one year expected loss on this portfolio?

                        • A. $1.38m
                        • B. $5.26m
                        • C. $11m
                        • D. $5.5m
                        Reveal Solution  Discussion  0

                        Correct Answer: D  🗳️

                        Explanation: Only visible for DumpTorrent members. You can sign-up / login (it's free).

                        Question #3

                        Which of the following data sources are expected to influence operational risk capital under the AMA:
                        I. Internal Loss Data (ILD)
                        II. External Loss Data (ELD)
                        III. Scenario Data (SD)
                        IV. Business Environment and Internal Control Factors (BEICF)

                        • A. All of the above
                        • B. I, II and III only
                        • C. III only
                        • D. I and II
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

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                        Question #4

                        A bank holds $10m of a corporate debt that it has purchased CDS protection against. What is the impact on the short term liquidity of the bank in the event of a default by the corporate on its bonds?

                        • A. An immediate reduction in available liquidity
                        • B. A short term increase in available liquidity
                        • C. No impact
                        • D. Cannot be determined without information on recovery rates
                        Reveal Solution  Discussion  0

                        Correct Answer: B  🗳️

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                        Question #5

                        Which of the following situations are not suitable for applying parametric VaR:
                        I. Where the portfolio's valuation is linearly dependent upon risk factors II. Where the portfolio consists of non-linear products such as options and large moves are involved III. Where the returns of risk factors are known to be not normally distributed

                        • A. All of the above
                        • B. I and III
                        • C. II and III
                        • D. I and II
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

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