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8011 Test Questions Vce | Exam 8011 Exercise

In order to help you easily get your desired PRMIA 8011 certification, PRMIA is here to provide you with the PRMIA 8011 exam dumps. We need to adapt to our ever-changing reality. To prepare for the actual PRMIA 8011 Exam, you can use our PRMIA 8011 exam dumps.

Candidates for the PRMIA 8011 Certification Exam are required to have in-depth knowledge and practical skills in credit risk management, including credit underwriting, credit monitoring, exposure management, credit portfolio management, and managing counterparty risk. They must also be able to analyze and implement credit risk strategies that take into account the legal, regulatory, and market factors that affect exposure.

The Credit and Counterparty Manager (CCRM) Certificate Exam certification is ideal for professionals working in financial institutions, including banks, insurance companies, and asset management firms, who are responsible for managing credit risk, counterparty risk, and credit derivatives. The PRMIA 8011 Certification provides candidates with a comprehensive understanding of these risk management concepts and helps them develop the necessary skills to succeed in their roles. Obtaining this certification sets professionals apart in the financial industry and can further their careers by demonstrating their expertise to potential employers and clients.

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PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q104-Q109):

NEW QUESTION # 104
In respect of operational risk capital calculations, the Basel II accord recommends a confidence level and time horizon of:

• A. 99.9% confidence level over a 1 year time horizon
• B. 99% confidence level over a 10 year time horizon
• C. 99% confidence level over a 1 year time horizon
• D. 99.9% confidence level over a 10 day time horizon

Answer: A

Explanation:
Choice 'd' represents the Basel II requirement, all other choices are incorrect.

NEW QUESTION # 105
The definition of operational risk per Basel II includes which of the following:
I. Risk of loss resulting from inadequate or failed internal processes, people and systems or from external events II. Legal risk III. Strategic risk IV. Reputational risk

• A. I and III
• B. I, II, III and IV
• C. I and II
• D. II and III

Answer: C

Explanation:
Operational risk as defined in Basel II specifically excludes strategic and reputational risk. Therefore Choice
'd' is the correct answer.
Note that Basel II defines operational risk as follows:
Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.

NEW QUESTION # 106
If A and B be two uncorrelated securities, VaR(A) and VaR(B) be their values-at-risk, then which of the following is true for a portfolio that includes A and B in any proportion. Assume the prices of A and B are log- normally distributed.

• A. VaR(A+B) > VaR(A) + VaR(B)
• B. The combined VaR cannot be predicted till the correlation is known
• C. VaR(A+B) = VaR(A) + VaR(B)
• D. VaR(A+B) < VaR(A) + VaR(B)

Answer: D

Explanation:
First of all, if prices are lognormally distributed, that implies the returns (which are equal to the log of prices) are normally distributed. To say that prices are lognormally distributed is just another way of saying that returns are normally distributed.
Since the correlation between the two securities is zero, this means their variances can be added. But standard deviations, or volatilities cannot be added (they will be the square root of sum of variances). VaR is nothing but a multiple of standard deviation, and therefore it is not additive if correlations are anything other than 1 (ie perfect positive, which would imply we are dealing with the same asset). Therefore VaR(A+B)=SQRT(VaR (A)