Free Practice PRMIA 8010 Exam Questions 2025

Stay ahead with 100% Free Operational Risk Manager (ORM) 8010 Dumps Practice Questions

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Total 242 Questions | Updated On: Jun 04, 2025

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Question 1

Which of the following is a cause ofmodel risk in risk management?

A : Programming errors

B : Misspecification of the model

C : Incorrect parameter estimation

D : All of the above

Answer: D

Question 2

A bullet bond and an amortizing loan are issued at the same time with the same maturity and with the same principal. Which of these would have a greater credit exposure halfway through their life?

A : Indeterminate with the given information

B : They would have identical exposure half way through their lives

C : The amortizing loan

D : The bullet bond

Answer: D

Question 3

A financial institution is considering shedding a business unit to reduce its economic capital requirements. Which of the following is an appropriate measure of theresulting reduction in capital requirements?

A : Incremental capital for the business unit in consideration

B : Proportionate capital for the business unit in consideration

C : Percentage of total gross income contributed by the business unit in question

D : Marginal capital for the business unit in consideration

Answer: A

Question 4

A risk management function is best organized as:

A : integrated with the risk taking functions as risk management should be a pervasive activity carried out at all levels of theorganization.

B : report independently of the risk taking functions

C : reporting directly to the traders, as to be closest to the point at which risks are being taken

D : a part of the trading desks and other risk taking teams

Answer: B

Question 5

The VaR of a portfolio at the 99% confidence level is $250,000 when mean return is assumed to be zero. If the assumption of zero returns is changed to an assumption of returns of $10,000, what is the revised VaR?

A : 260000

B : 240000

C : 273260

D : 226740

Answer: B

Page: 1 / 49

Total 242 Questions | Updated On: Jun 04, 2025

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