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PRMIA 8010 Exam Overview:
| Certification Vendor: | Professional Risk Managers' International Association (PRMIA) |
|---|---|
| Exam Name: | Operational Risk Management (ORM) Certificate Exam |
| Exam Number: | 8010 |
| Exam Price: | USD 599 (non-member) / USD 549 (member) |
| Exam Duration: | 120 minutes |
| Related Certifications: | PRMIA Credit & Counterparty Risk Management Certificate PRMIA Market, Liquidity & Asset Liability Risk Management Certificate PRMIA Cyber Risk Management Certificate |
| Exam Format: | Multiple Choice |
| Passing Score: | 60% |
| Available Languages: | English |
| Real Exam Qty: | 60 |
| Sample Questions: | PRMIA 8010 Sample Questions |
| Exam Way: | Computer-based exam conducted at Pearson VUE test centers or online proctored delivery. |
| Pre Condition: | Enrollment in the ORM Certificate program and payment of program fee required before exam authorization. No prior exam prerequisite. |
| Official Syllabus URL: | https://prmia.org/Public/Public/Certificate/ORM.aspx |
PRMIA 8010 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Introduction | 2% | - Overview of Operational Risk Management |
| Risk Information | 10% | - Loss Data, KRIs and Reporting |
| Operational Resilience | 4% | - Resilience Concepts and Practices |
| Risk Assessment | 10% | - Risk Identification and Assessment Techniques |
| Case Studies | 6% | - Applied Operational Risk Scenarios |
| Risk Governance | 6% | - Governance Principles and Risk Roles |
| Operational Risk Capital | 6% | - Capital Concepts & Basel III Context |
| Compliance Risk | 6% | - Compliance Risk Framework |
| Risk Management Framework | 10% | - Risk Appetite, Policies, Culture |
PRMIA Operational Risk Manager (ORM) Sample Questions:
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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Which of the following statements is true:
I. When averaging quantiles of two Pareto distributions, the quantiles of theaveraged models are equal to the geometric average of the quantiles of the original models based upon the number of data items in each original model.
II. When modeling severity distributions, we can only use distributions which have fewer parameters thanthe number of datapoints we are modeling from.
III. If an internal loss data based model covers the same risks as a scenario based model, they can can be combined using the weighted average of their parameters.
IV If an internal loss model and a scenario based model address different risks, the models can be combined by taking their sums.
- A. All statements are true
- B. III and IV
- C. II and III
- D. I and II
Correct Answer: A 🗳️
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If a borrower has a default probability of 12% over one year, what is the probability of default over a month?
- A. 1.06%
- B. 1.00%
- C. 2.00%
- D. 12.00%
Correct Answer: A 🗳️
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Economic capital under the Earnings Volatility approach is calculated as:
- A. Earnings under the worst case scenario at a given confidence level/Required rate of return for the firm
- B. [Expected earningsless Earnings under the worst case scenario at a given confidence level]/Required rate of return for the firm
- C. Expected earnings/Specific risk premium for the firm
- D. Expected earnings/Required rate of return for the firm
Correct Answer: B 🗳️
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Under the standardized approach to determining operational risk capital, operations risk capital is equal to:
- A. 15% of the average gross income (considering only the positive years) of the past three years
- B. a varying percentage, determined by the national regulator, of the gross revenue of each of the bank's business lines
- C. a fixed percentage of the latest gross income of the bank
- D. a fixed percentage (different for each business line) of the gross income of the eight specified business lines, averaged over three years
Correct Answer: D 🗳️
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By Ivan
