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

  • 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: Oct 19, 2026
  • Q & A: 359 Questions and Answers

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PRMIA 8008 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Market Risk15%- Market Risk Factors & Drivers
- Value-at-Risk (VaR) & Stress Testing
- Regulatory Capital for Market Risk
- Interest Rate, Equity, FX & Commodity Risk
Topic 2: ALM & FTP10%- Interest Rate Risk in the Banking Book
- Asset-Liability Management Principles
- Funds Transfer Pricing Methodology & Application
- Liquidity Risk Management
Topic 3: Risk Management Frameworks20%- Enterprise Risk Management Principles
- Regulatory Frameworks & Basel Accords
- Risk Governance & Culture
- Risk Measurement Methodologies
Topic 4: Operational Risk20%- Definition & Scope
- Control & Mitigation Techniques
- Risk Identification & Assessment
- Capital Requirements & Advanced Measurement Approaches
Topic 5: Credit Risk20%- Loss Given Default & Credit Valuation Adjustment
- Credit Risk Concepts
- Credit Risk Modeling & Capital Calculation
- Exposure & Probability of Default
Topic 6: Counterparty Risk15%- Counterparty Credit Risk Fundamentals
- Netting, Collateral & Margining
- Potential Future Exposure
- Credit Value Adjustment (CVA) & Wrong-way Risk

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

Question #1

Which of the following statements is true in relation to a normal mixture distribution:
I. The mixture will always have a kurtosis greater than a normal distribution with the same mean and variance II. A normal mixture density function is derived by summing two or more normal distributions III. VaR estimates for normal mixtures can be calculated using a closed form analytic formula

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

Correct Answer: D  🗳️

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Question #2

Altman's Z-score does not consider which of the following ratios:

  • A. Market capitalization to debt
  • B. Net income to total assets
  • C. Sales to total assets
  • D. Working capital to total assets
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

Which of the following are valid criticisms of value at risk:
I. There are many risks that a VaR framework cannot model
II. VaR does not consider liquidity risk
III. VaR does not account for historical market movements
IV. VaR does not consider the risk of contagion

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

Correct Answer: C  🗳️

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Question #4

A bank's detailed portfolio data on positions held in a particular security across the bank does not agree with the aggregate total position for that security for the bank. What data quality attribute is missing in this situation?

  • A. Auditability
  • B. Data integrity
  • C. Data extensibility
  • D. Data completeness
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

The CDS quote for the bonds of Bank X is 200 bps. Assuming a recovery rate of 40%, calculate the default hazard rate priced in the CDS quote.

  • A. 5.00%
  • B. 0.80%
  • C. 3.33%
  • D. 2.00%
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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