PRMIA 8010 Operational Risk Manager (ORM) Exam Online Training
PRMIA 8010 Online Training
The questions for 8010 were last updated at Jul 20,2025.
- Exam Code: 8010
- Exam Name: Operational Risk Manager (ORM) Exam
- Certification Provider: PRMIA
- Latest update: Jul 20,2025
For creditrisk calculations, correlation between the asset values of two issuers is often proxied with:
- A . Credit migration matrices
- B . Transition probabilities
- C . Equity correlations
- D . Default correlations
Which of the following decisions need to be made as part of laying down a system for calculating VaR:
I. The confidence level and horizon
II. Whether portfolio valuation is based upon a delta-gamma approximation or a full revaluation
III. Whether the VaR is to be disclosed in the quarterly financial statements
IV. Whether a 10 day VaR will be calculated based on 10-day return periods, or for 1-day and scaled to 10 days
- A . I and III
- B . II and IV
- C . I, II and IV
- D . All of the above
The standalone economic capital estimates for the three uncorrelated business units of a bank are $100, $200 and $150 respectively .
What is the combined economic capital for the bank?
- A . 269
- B . 72500
- C . 21
- D . 450
Which of the following risks and reasons justify the use of scenario analysis in operational risk modeling:
I. Risks for which no internal loss data is available
II. Risks that are foreseeable but have no precedent, internally or externally
III. Risks for which objective assessments can be made by experts
IV. Risks that are known to exist, but for which no reliable external or internal losses can be analyzed
V. Reducing the complexity of having to fit statistical models to internal and external loss data
VI. Managing the capital estimation process as to produce estimates in line with management’s desired capital buffers.
- A . I, II and III
- B . I, II, III and IV
- C . V
- D . All of the above
If EV be the expected value of a firm’s assets in a year, and DP be the ‘default point’ per the KMV approach to credit risk, and be the standard deviation of future asset returns, then the distance-to-default is given by:
A)
B)
C)
D)
- A . Option A
- B . Option B
- C . Option C
- D . Option D
Which of the following is not a credit event under ISDA definitions?
- A . Restructuring
- B . Obligation accelerations
- C . Rating downgrade
- D . Failure to pay
The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed to it is called:
- A . Pre-settlement risk
- B . Credit risk
- C . Replacement risk
- D . Settlement risk
Which of the following is NOT true in respect of bilateral close out netting:
- A . The net amount due is immediately receivable or payable
- B . All transactions are immediately closed out upon the occurrence of a credit event for either of the counterparties
- C . All transactions are netted against each other
- D . Transactions are separated by transaction type and immediately settled separately at each’s replacement value
Which of the following techniques is used to generate multivariate normal random numbers that are correlated?
- A . Simulation
- B . Markov process
- C . Cholesky decomposition of the correlation matrix
- D . Pseudo random number generator
If E denotes the expected value of a loan portfolio at the end on one year and U the value of the portfolio in the worst case scenario at the 99% confidence level, which of the following expressions correctly describes economic capital required in respect of credit risk?
- A . E – U
- B . U/E
- C . U
- D . E
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