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

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  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
  • Certification Provider: PRMIA
  • Corresponding Certification: PRM Certification
  • Updated: Sep 10, 2026
  • No. of Questions: 359 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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PRMIA 8008 Exam Syllabus Topics:

SectionWeightObjectives
Risk Management Frameworks20%- Risk Governance & Culture
- Enterprise Risk Management Principles
- Regulatory Frameworks & Basel Accords
- Risk Measurement Methodologies
Counterparty Risk15%- Counterparty Credit Risk Fundamentals
- Potential Future Exposure
- Netting, Collateral & Margining
- Credit Value Adjustment (CVA) & Wrong-way Risk
Market Risk15%- Market Risk Factors & Drivers
- Regulatory Capital for Market Risk
- Interest Rate, Equity, FX & Commodity Risk
- Value-at-Risk (VaR) & Stress Testing
ALM & FTP10%- Liquidity Risk Management
- Funds Transfer Pricing Methodology & Application
- Interest Rate Risk in the Banking Book
- Asset-Liability Management Principles
Operational Risk20%- Control & Mitigation Techniques
- Capital Requirements & Advanced Measurement Approaches
- Definition & Scope
- Risk Identification & Assessment
Credit Risk20%- Exposure & Probability of Default
- Credit Risk Concepts
- Credit Risk Modeling & Capital Calculation
- Loss Given Default & Credit Valuation Adjustment

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

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. 450
  • B. 21
  • C. 72500
  • D. 269
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Economic capital under the Earnings Volatility approach is calculated as:

  • A. Expected earnings/Required rate of return for the firm
  • B. Expected earnings/Specific risk premium for the firm
  • C. [Expected earnings less Earnings under the worst case scenario at a given confidence level]/Required rate of return for the firm
  • D. Earnings under the worst case scenario at a given confidence level/Required rate of return for the firm
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Pass4sureCert members. You can sign-up / login (it's free).

When considering a request for a loan from a retail customer, which of the following factors is relevant for a bank to consider:

  • A. The credit worthiness of the retail customer
  • B. The contribution this new loan would bring to total portfolio risk
  • C. The other retail loans in its portfolio
  • D. All of the above
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which of the following is not true about the ISDA master agreement (ISDA MA):

  • A. The CSA (Credit Support Annex) is one of the parts of the ISDA MA
  • B. The ISDA MA describes the close out process
  • C. All transactions under the ISDA MA are considered separate obligations
  • D. The ISDA MA describes events of default, and termination events
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Financial institutions need to take volatility clustering into account:
I. To avoid taking on an undesirable level of risk
II. To know the right level of capital they need to hold
III. To meet regulatory requirements
IV. To account for mean reversion in returns

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

Correct Answer: D  🗳️

Explanation: Only visible for Pass4sureCert members. You can sign-up / login (it's free).

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