8020 by PRMIA Actual Free Exam Questions And Answers

Question 1

In Operational Resilience, which of the following is not an important measure of whether a Business Service can be considered Critical?

A. Whether a disruption to the provision of the service could cause material customer detriment.

B. Whether a disruption to the provision of the service could harm market integrity.

C. Whether a disruption to the provision of the service could exceed risk appetite.

D. Whether a disruption to the provision of the service could threaten a firm's viability.

Discussion 0

Correct Answer: C Vote an answer

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Question 2

How should Near Misses and Opportunity Costs be treated within Operational Risk?

A. Recorded and Analyzed. Used in calculation of Operational Risk Capital.

B. Reported. Recorded and Analyzed. Not Used in calculation of Operational Risk Capital.

C. Reported, Recorded and Analyzed, Used in calculation of Operational Risk Capital.

D. Ignored.

Discussion 0

Correct Answer: B Vote an answer

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Question 3

For credit risk losses containing operational risk elements that have been historically included in an organizations' credit risk database how should the loss amount be treated?

A. The entire loss amount is treated as credit risk

B. The entire loss amount is treated as credit risk, but the loss is entered as a memorandum within the operational loss database and not used for capital modeling purposes.

C. The loss amount is split into credit and operational risk components.

D. The entire loss amount is treated as operational risk.

Discussion 0

Correct Answer: C Vote an answer

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Question 4

Risk Sensitive pricing is required for several good reasons. Which one of the following is not relevant to the Management's evaluation of the correct approach to Risk Sensitive pricing?

A. To avoid the build-up of a skewed quality property portfolio.

B. To ensure the income targets can be met or exceeded.

C. To adequately reward the investors for the capital they gave us to put at risk.

D. To link personal targets to risk-adjusted return requirements would reinforce the desired risk aware, culture.

Discussion 0

Correct Answer: B Vote an answer

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Question 5

Governance can be defined as which of the following?

A. Governance is being replaced by management in all firms that are regulated.

B. Governance is a structure specifying the ways in which reporting is made to the primary regulator.

C. Governance is a structure specifying the daily operation of a firm.

D. Governance is a structure specifying the policies, principles, and procedures for making decisions about corporate direction.

Discussion 0

Correct Answer: D Vote an answer

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Question 6

Ideally, the facilitator of a risk assessment workshop should:

A. Attend via a video connection to allow proper distance.

B. Remain objective and refrain from expressing his or her own opinions.

C. Remind the attendees that they can override the results of the workshop once the risks are tallied.

D. Guide the workshop toward a pre-determined conclusion, based upon known industry identified risks.

Discussion 0

Correct Answer: B Vote an answer

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Question 7

For the WorldCom case, what was one of the causes of the failure?

A. The lack of a CRO during the final IPO.

B. Unauthorized trading in derivatives.

C. A rapid pace of acquisitions and poor integration of acquired companies.

D. Risk models that did not reflect loosened underwriting standards of mortgage originators.

Discussion 0

Correct Answer: C Vote an answer

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PRMIA ORM Certificate - 2023 Update - 8020 Exam Practice Test

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