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PRMIA 8010 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Regulatory and Industry Standards | - Regulatory expectations for operational risk management - Basel operational risk frameworks |
| Topic 2: Operational Risk Fundamentals | - Definition and scope of operational risk - Risk taxonomy and loss event types - Operational risk within enterprise risk management |
| Topic 3: Risk Governance and Frameworks | - Risk governance structures and accountability - Three lines of defense model |
| Topic 4: Mitigation and Control | - Risk transfer mechanisms including insurance - Internal controls and control testing |
| Topic 5: Risk Identification and Assessment | - Risk and control self-assessment (RCSA) - Scenario analysis and risk mapping |
| Topic 6: Measurement and Quantification | - Loss distribution approaches - Key risk indicators (KRIs) |
PRMIA Operational Risk Manager (ORM) Sample Questions:
1. Which of the following objectives are targeted by rating agencies when assigning ratings:
I. Ratings accuracy
II. Ratings stability
III. High accuracy ratio (AR)
IV. Ranked ratings
A) I, II and III
B) III and IV
C) I and II
D) II and III
2. Which of the following statements is true
I. If no loss data is available, good quality scenarios can be used to model operational risk II. Scenario data can be mixed with observed loss data for modeling severity and frequency estimates III. Severity estimates should not be created by fitting models to scenario generated loss data points alone IV. Scenario assessments should only be used as modifiers to ILD or ELD severity models.
A) All statements are true
B) III and IV
C) I
D) I and II
3. Which of the following statements are true:
I. A transition matrix is the probability of a security migrating from one rating class to another during its lifetime.
II. Marginal default probabilities refer to probabilities of default in a particular period, given survival atthe beginning of that period.
III. Marginal default probabilities will always be greater than the corresponding cumulative default probability.
IV. Loss given default is generally greater when recovery rates are low.
A) I and III
B) I, III and IV
C) II andIV
D) I and IV
4. If the full notional value of a debt portfolio is $100m, its expected value in a year is $85m, and the worst value of the portfolio in one year's time at 99% confidence level is $60m, then what is the credit VaR?
A) $40m
B) $25m
C) $15m
D) $60m
5. A risk management function is best organized as:
A) reporting directly to the traders, as to be closest to the point at which risks are being taken
B) integrated with the risk taking functions as risk management should be a pervasive activity carried out at all levels of theorganization.
C) a part of the trading desks and other risk taking teams
D) report independently of the risk taking functions
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |






