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

A1 and 2

B1, 2, 3 and 4

C1, 2 and 4

D3 and 4

Show Suggested 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.

by Arlene at Nov 20, 2022, 04:36 PM

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