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

8008 actual test
  • 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: Sep 11, 2026
  • Q & A: 359 Questions and Answers
  • PDF Demo
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  • Total Price: $59.99  

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PRMIA 8008 Exam Syllabus Topics:

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

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

                        Question #1

                        When the volatility of the yield for a bond increases, which of the following statements is true:

                        • A. The VaR for the bond increases and its value stays the same
                        • B. The VaR for the bond decreases and its value increases
                        • C. The VaR for the bond increases and its value decreases
                        • D. The VaR for the bond decreases and its value is unaffected
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

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

                        Question #2

                        Which of the following are valid approaches for extreme value analysis given a dataset:
                        I. The Block Maxima approach
                        II. Least squares approach
                        III. Maximum likelihood approach
                        IV. Peak-over-thresholds approach

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

                        Correct Answer: B  🗳️

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

                        Question #3

                        In estimating credit exposure for a line of credit, it is usual to consider:

                        • A. the full value of the credit line to be the exposure at default as the borrower has an informational advantage that will lead them to borrow fully against the credit line at the time of default.
                        • B. the present value of the line of credit at the agreed rate of lending.
                        • C. a fixed fraction of the line of credit to be the exposure at default even though the currently drawn amount is quite different from such a fraction.
                        • D. only the value of credit exposure currently existing against the credit line as the exposure at default.
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

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

                        Question #4

                        Which of the following statements is true:
                        I. Confidence levels for economic capital calculations are driven by desired credit ratings II. Loss distributions for operational risk are affected more by the severity distribution than the frequency distribution III. The Advanced Measurement Approach (AMA) referred to in the Basel II standard is a type of a Loss Distribution Approach (LDA) IV. The loss distribution for operational risk under the LDA (Loss Distribution Approach) is estimated by separately estimating the frequency and severity distributions.

                        • A. I, II and IV
                        • B. III and IV
                        • C. I, III and IV
                        • D. I and II
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

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

                        Question #5

                        For an equity portfolio valued at V whose beta is , the value at risk at a 99% level of confidence is represented by which of the following expressions? Assume represents the market volatility.

                        • A. 2.326 x V x /
                        • B. 2.326 x x V x
                        • C. 1.64 x V x /
                        • D. 1.64 x x V x
                        Reveal Solution  Discussion  0

                        Correct Answer: B  🗳️

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

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