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PRMIA 8010 Exam Questions

Exam Name: Operational Risk Manager (ORM) Exam
Exam Code: 8010
Related Certification(s): PRMIA Operational Risk Management ORM Certification
Certification Provider: PRMIA
Number of 8010 practice questions in our database: 241 (updated: Apr. 16, 2025)
Expected 8010 Exam Topics, as suggested by PRMIA :
  • Topic 1: Classic Credit Products: This section of the exam covers traditional lending instruments like loans and bonds used by banks and financial institutions.
  • Topic 2: Classic Credit Life Cycle: This section covers the stages a credit product goes through, from origination to maturity or default.
  • Topic 3: Classic Credit Risk Methodology: This section covers conventional approaches to assessing and quantifying the risk of borrower default.
  • Topic 4: Credit Derivatives and Securitization: In this section, the topics covered include financial instruments that transfer credit risk and pool debt-based assets into tradable securities.
  • Topic 5: Modern Credit Risk Modeling: This section covers advanced statistical and mathematical techniques for measuring and managing credit risk.
  • Topic 6: Credit Portfolio Management: This section covers strategies for optimizing the overall risk and return of a collection of credit exposures.
  • Topic 7: Basics of Counterparty Risk: This section covers fundamental concepts related to the risk of a counterparty failing to fulfill their contractual obligations.
  • Topic 8: Risk Mitigation: This section covers techniques and tools used to reduce or transfer various types of financial risks.
  • Topic 9: Credit Valuation Adjustment (CVA): This section covers an adjustment to the fair value of derivatives to account for counterparty credit risk.
  • Topic 10: CVA-related Aspects: This section covers additional considerations and implications associated with Credit Valuation Adjustment.
  • Topic 11: Managing Counterparty Risk and CVA: This section covers strategies and practices for controlling exposure to counterparty default and optimizing CVA.
Disscuss PRMIA 8010 Topics, Questions or Ask Anything Related

Ernest

22 days ago
Change Management in relation to operational risk was tested. Be ready for questions on managing risks during organizational changes. Study change impact assessment techniques.
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Tonette

24 days ago
PRMIA ORM certification achieved! Pass4Success made it possible with their excellent exam prep resources.
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Josue

1 months ago
Operational Risk in Financial Products was covered. Expect questions on risks associated with different financial instruments. Review operational aspects of trading, settlements, and custody.
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Camellia

2 months ago
Thanks to Pass4Success, I sailed through the PRMIA ORM exam. Their materials were perfectly aligned.
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Kirk

2 months ago
Cyber Risk Management featured prominently. Prepare for questions on identifying and mitigating cyber threats. Study common cyber attack types and prevention strategies.
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Aileen

2 months ago
Risk Reporting was a key area. Practice interpreting risk reports and dashboards. Understand how to effectively communicate risk information to different stakeholders.
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Paola

3 months ago
Passed the PRMIA ORM exam on my first try. Pass4Success's practice questions were incredibly helpful.
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Tatum

3 months ago
Governance structures were emphasized. Expect questions on roles and responsibilities in operational risk management. Review Three Lines of Defense model and its application.
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Tresa

3 months ago
Happy to announce that I passed the ORM exam! The Pass4Success practice questions were a great resource. There was a challenging question on Managing Counterparty Risk and CVA, specifically about the impact of collateral agreements. I was a bit unsure about the details, but I still passed.
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Huey

3 months ago
The exam delved into Operational Risk Modeling techniques. Be ready for questions on Loss Distribution Approach and Scenario Analysis. Study statistical concepts related to operational risk quantification.
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Chau

4 months ago
PRMIA ORM exam conquered! Pass4Success's resources were invaluable for quick and effective preparation.
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Patti

4 months ago
Key Risk Indicators (KRIs) were frequently tested. Practice identifying and developing effective KRIs for various operational risks. Understand how to use them for monitoring and reporting.
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Dorinda

4 months ago
Business Continuity Planning was a significant topic. Expect questions on BCP components and implementation. Review disaster recovery strategies and crisis management procedures.
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Ma

4 months ago
I successfully passed the ORM exam, thanks to the help of Pass4Success practice questions. One question that puzzled me was about the Basics of Counterparty Risk, particularly the calculation of Potential Future Exposure (PFE). I wasn't certain about the time horizon to use, but I managed to pass.
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Hyman

5 months ago
Grateful for Pass4Success's help with the PRMIA ORM exam. Their questions were crucial for my success.
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Veronika

5 months ago
Operational Risk Appetite was an important concept. Prepare for questions on setting and monitoring risk appetite statements. Understand how it aligns with organizational strategy.
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Brandon

5 months ago
Excited to share that I passed the ORM exam! The Pass4Success practice questions were incredibly useful. There was a question on Classic Credit Products, asking about the features of different types of loans. I was unsure about the specifics of syndicated loans, but I still passed.
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Rolande

5 months ago
Risk Mitigation strategies were crucial. The exam had questions on selecting appropriate controls for different scenarios. Study various risk response options and their effectiveness.
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Lonna

5 months ago
I passed the ORM exam, and I owe a lot to Pass4Success practice questions. One question that caught me off guard was about Modern Credit Risk Modeling, specifically the use of Monte Carlo simulations in estimating credit risk. I wasn't entirely confident in my answer, but I managed to pass.
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Alline

6 months ago
Pass4Success made my PRMIA ORM exam prep a breeze. Passed with flying colors!
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Antonette

6 months ago
Regulatory requirements featured heavily. Expect questions on Basel III operational risk guidelines. Familiarize yourself with key regulatory bodies and their roles in operational risk management.
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Rose

6 months ago
Passing the ORM exam was a great achievement, and the Pass4Success practice questions were a big help. There was a question about the Classic Credit Life Cycle, particularly the stages of credit assessment and monitoring. I was a bit confused about the exact sequence, but I still passed.
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Edison

6 months ago
The exam covered a lot on Risk Assessment methodologies. Practice quantitative and qualitative assessment questions. Understand how to apply different techniques to case studies.
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Jolene

6 months ago
I am thrilled to have passed the ORM exam, thanks to Pass4Success. One challenging question involved the various types of Credit Derivatives and their uses in risk management. I was unsure about the specifics of a Credit Default Swap (CDS), but I managed to answer it well enough to pass.
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Tamala

7 months ago
Aced the PRMIA ORM exam thanks to Pass4Success. Their materials were spot-on and saved me so much time.
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Rodrigo

7 months ago
Risk Identification techniques were a big part of my exam. Be prepared for scenario-based questions on various methods. Review brainstorming, workshops, and risk mapping approaches.
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Kristal

7 months ago
Just passed the ORM exam! The Pass4Success practice questions were a great help. There was a tricky question on the Classic Credit Risk Methodology, specifically about the differences between the Standardized Approach and the Internal Ratings-Based Approach. I was a bit unsure about the risk weights, but I still made it through.
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Lorean

7 months ago
Just passed the PRMIA ORM Exam! Key topic: Operational Risk Frameworks. Expect questions on identifying components of effective frameworks. Study different framework models and their applications.
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Reed

7 months ago
I recently passed the PRMIA Operational Risk Manager (ORM) Exam, and I must say, the Pass4Success practice questions were instrumental. One question that stumped me was about the calculation of Credit Valuation Adjustment (CVA) for a portfolio of derivatives. I wasn't entirely sure how to factor in the counterparty's credit spread, but I managed to pass regardless.
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Micaela

8 months ago
Just passed the PRMIA ORM exam! Pass4Success was a lifesaver with their relevant practice questions. Thank you!
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Olga

10 months ago
Just passed the PRMIA ORM exam! Key focus: operational risk identification methods. Expect scenario-based questions on risk assessment techniques. Study the bow-tie analysis thoroughly. Thanks to Pass4Success for the spot-on practice questions that helped me prepare efficiently!
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Free PRMIA 8010 Exam Actual Questions

Note: Premium Questions for 8010 were last updated On Apr. 16, 2025 (see below)

Question #1

The probability of default of a security during the first year after issuance is 3%, that during the second and third years is 4%, and during the fourth year is 5%. What is the probability that it would not have defaulted at the end of four years from now?

Reveal Solution Hide Solution
Correct Answer: D

The probability that the security would not default in the next 4 years is equal to the probability of survival at the end of the four years. In other words, =(1 - 3%)*(1 - 4%)*(1 - 4%)*(1 - 5%) = 84.93%. Choice 'd' is the correct answer.


Question #2

For credit risk calculations, correlation between the asset values of two issuers is often proxied with:

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Correct Answer: C

Asset returns are relevant for credit risk models where a default is related to the value of the assets of the firm falling below the default threshold. When assessing credit risk for portfolios with multiple credit assets, it becomes necessary to know the asset correlations of the different firms. Since this data is rarely available, it is very common to approximate asset correlations using equity prices. Equity correlations are used as proxies for asset correlation, therefore Choice 'c' is the correct answer.


Question #3

Which of the following are valid approaches for extreme value analysis given a dataset:

1. The Block Maxima approach

2. Least squares approach

3. Maximum likelihood approach

4. Peak-over-thresholds approach

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Correct Answer: C

For EVT, we use the block maxima or the peaks-over-threshold methods. These provide us the data points that can be fitted to a GEV distribution.

Least squares and maximum likelihood are methods that are used for curve fitting, and they have a variety of applications across risk management.


Question #4

Which of the following statements are true:

1. A high score according to Altman's Z-Score methodology indicates a lower default risk

2. A high score according to the Probit or Logit models indicates a higher default risk

3. A high score according to Altman's Z-Score methodology indicates a higher default risk

4. A high score according to the Probit or Logit models indicates a lower default risk

Reveal Solution Hide Solution
Correct Answer: D

A high score under the probit and logit models indicates a higher default risk, while under Altman's methodology it indicates a lower default risk. Therefore Choice 'd' is the correct answer.


Question #5

Which of the following is not a measure of risk sensitivity of some kind?

Reveal Solution Hide Solution
Correct Answer: A

Measures of risk sensitivity include delta, gamma, vega, PV01, convexity and CR01, among others. They allow approximating the change in the value of a portfolio from a change (generally small) in one of the underlying risk factors.

Risk sensitivity measures are derivatives of the value of the portfolio, calculated with respect to the risk factor. Some risk sensitivity measures are second derivatives, and allow a more precise calculation of the change in the value of the portfolio. Many risk sensitivities are represented by Greek letter, but not all.

Delta () is a measure of the change in portfolio value based on a 1% change in the value of the underlying. Gamma () is a second order derivative that improves the calculation as part of a Taylor expansion. CR01 is a measure of the change due to a 1 basis point change in the credit spread. PL01 is not a measure of any kind of risk sensitivity, it does not mean anything.



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