Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

PRMIA 8010 Exam - Topic 3 Question 87 Discussion

According to the implied capital model, operational risk capital is estimated as:
B) Total capital less market risk capital less credit risk capital
A) Operational risk capital held by similar firms, appropriately scaled
C) Capital implied from known risk premiums and the firm's earnings
D) Total capital based on the capital asset pricing model

PRMIA 8010 Exam - Topic 3 Question 87 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 87
Topic #: 3
[All 8010 Questions]

According to the implied capital model, operational risk capital is estimated as:

Show Suggested Answer Hide Answer
Suggested Answer: B

Operational risk capital estimated using the implied capital model is merely the capital that is not attributable to market or credit risk. Therefore Choice 'b' is the correct answer. All other responses are incorrect.


by Page at May 29, 2026, 09:52 AM

Limited Time Offer

25%

Off

Get Premium 8010 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Hubert
15 hours ago
C seems logical too. Known risk premiums are important.
upvoted 0 times
...
Crista
6 days ago
I lean towards A. Using similar firms is a solid approach.
upvoted 0 times
...
Staci
11 days ago
I think B is the best choice. It makes sense to subtract market and credit risk.
upvoted 0 times
...
Roosevelt
16 days ago
A is a solid choice too, especially for similar firms!
upvoted 0 times
...
Adolph
21 days ago
C sounds interesting, but is it really reliable?
upvoted 0 times
...
Felton
26 days ago
Wait, how can we just subtract market and credit risk? Seems too simple.
upvoted 0 times
...
Curtis
1 month ago
Totally agree with B, it covers all bases!
upvoted 0 times
...
Almeta
1 month ago
I think it's B, that makes the most sense.
upvoted 0 times
...
Delsie
1 month ago
I don't think it's D because the capital asset pricing model is more about expected returns, not directly about operational risk capital.
upvoted 0 times
...
Teri
2 months ago
I'm a bit confused because I feel like option C could also be correct since it mentions known risk premiums, but I can't recall the details clearly.
upvoted 0 times
...
Rolland
2 months ago
I remember practicing a question similar to this, and I think it was about calculating total capital after subtracting market and credit risks, which might point to option B.
upvoted 0 times
...
Tawanna
2 months ago
I think the implied capital model focuses on how much capital firms need for operational risk, but I'm not sure if it's option A or B.
upvoted 0 times
...

Save Cancel