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PRMIA Exam 8010 Topic 1 Question 21 Discussion

Actual exam question for PRMIA's Operational Risk Manager (ORM) Exam exam
Question #: 21
Topic #: 1
[All Operational Risk Manager (ORM) Exam Questions]

Which of the following can be used to reduce credit exposures to a counterparty:

1. Netting arrangements

2. Collateral requirements

3. Offsetting trades with other counterparties

4. Credit default swaps

Show Suggested Answer Hide Answer
Suggested Answer: C

Offsetting trades with other counterparties will not reduce credit exposure to a given counterparty. All other choices represent means of reducing credit risk. Therefore Choice 'c' is the correct answer.


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