PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition : 8008

  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
  • Updated: Oct 22, 2026
  • Q & A: 359 Questions and Answers

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PRMIA 8008 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Operational Risk20%- Capital Requirements & Advanced Measurement Approaches
- Definition & Scope
- Control & Mitigation Techniques
- Risk Identification & Assessment
Topic 2: Risk Management Frameworks20%- Regulatory Frameworks & Basel Accords
- Enterprise Risk Management Principles
- Risk Measurement Methodologies
- Risk Governance & Culture
Topic 3: Credit Risk20%- Credit Risk Concepts
- Credit Risk Modeling & Capital Calculation
- Exposure & Probability of Default
- Loss Given Default & Credit Valuation Adjustment
Topic 4: Market Risk15%- Interest Rate, Equity, FX & Commodity Risk
- Value-at-Risk (VaR) & Stress Testing
- Regulatory Capital for Market Risk
- Market Risk Factors & Drivers
Topic 5: ALM & FTP10%- Interest Rate Risk in the Banking Book
- Liquidity Risk Management
- Asset-Liability Management Principles
- Funds Transfer Pricing Methodology & Application
Topic 6: Counterparty Risk15%- Potential Future Exposure
- Credit Value Adjustment (CVA) & Wrong-way Risk
- Netting, Collateral & Margining
- Counterparty Credit Risk Fundamentals

PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition Sample Questions:

Question #1

Which of the following need to be assumed to convert a transition probability matrix for a given time period to the transition probability matrix for another length of time:
I. Time invariance
II. Markov property
III. Normal distribution
IV. Zero skewness

  • A. II and III
  • B. III and IV
  • C. I, II and IV
  • D. I and II
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Which of the following describes rating transition matrices published by credit rating firms:

  • A. Probabilities of ratings transition from one rating to another for a given set of issuers
  • B. Realized frequencies of migration from one credit rating to another over a one year period
  • C. Probabilities of default for each credit rating class
  • D. Expected ex-ante frequencies of migration from one credit rating to another over a one year period
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

When performing portfolio stress tests using hypothetical scenarios, which of the following is not generally a challenge for the risk manager?

  • A. Considering back office capacity to deal with increased transaction volumes
  • B. Building a positive semi-definite covariance matrix
  • C. Building a consistent set of hypothetical shocks to individual risk factors
  • D. Evaluating interrelationships between counterparties when considering liquidity risks
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

What does a middle office do for a trading desk?

  • A. Operations
  • B. Transaction data entry
  • C. Risk analysis
  • D. Reconciliations
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Which of the following risks were not covered in detail in most stress tests prior to the current crisis:
I. The behavior of complex structured products under stressed liquidity conditions II. Pipeline or securitization risk III. Basis risk in relation to hedging strategies IV. Counterparty credit risk
V. Contingent risks
VI. Funding liquidity risk

  • A. All of the above
  • B. I, IV and VI
  • C. I, II, III, IV and VI
  • D. II, III and V
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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