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Updated: Aug 06, 2026
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| Certification Vendor: | PRMIA (Professional Risk Managers' International Association) |
| Exam Name: | PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition |
| Exam Number: | 8008 |
| Real Exam Qty: | 80 |
| Available Languages: | English |
| Related Certifications: | PRM Certification Exams I, II, IV ORM Certificate Credit & Counterparty Risk Manager Certificate |
| Certificate Validity Period: | 2 years (exam credit); Certification valid with annual membership & continuing education |
| Exam Duration: | 120 minutes |
| Exam Format: | Computer-based, Multiple-choice questions |
| Exam Price: | $225 USD (Members), $350 USD (Non-Members) |
| Passing Score: | 60% |
| Recommended Training: | PRMIA Official Study Guide & Handbook PRMIA Self-Study Courses |
| Exam Registration: | PRMIA Official Exam Registration Pearson VUE Scheduling |
| Sample Questions: | PRMIA 8008 Sample Questions |
| Exam Way: | Computer-based testing at Pearson VUE/Prometric centers or online proctored |
| Pre Condition: | PRMIA membership required; no mandatory exam prerequisites; recommended: relevant finance/risk knowledge or professional experience |
| Official Syllabus URL: | https://www.prmia.org/exam-8008 |
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Counterparty Risk | 15% | - Netting, Collateral & Margining - Credit Value Adjustment (CVA) & Wrong-way Risk - Potential Future Exposure - Counterparty Credit Risk Fundamentals |
| Topic 2: ALM & FTP | 10% | - Interest Rate Risk in the Banking Book - Funds Transfer Pricing Methodology & Application - Liquidity Risk Management - Asset-Liability Management Principles |
| Topic 3: Credit Risk | 20% | - Credit Risk Modeling & Capital Calculation - Exposure & Probability of Default - Credit Risk Concepts - Loss Given Default & Credit Valuation Adjustment |
| Topic 4: Risk Management Frameworks | 20% | - Regulatory Frameworks & Basel Accords - Enterprise Risk Management Principles - Risk Measurement Methodologies - Risk Governance & Culture |
| Topic 5: Operational Risk | 20% | - Risk Identification & Assessment - Control & Mitigation Techniques - Capital Requirements & Advanced Measurement Approaches - Definition & Scope |
| Topic 6: Market Risk | 15% | - Value-at-Risk (VaR) & Stress Testing - Market Risk Factors & Drivers - Regulatory Capital for Market Risk - Interest Rate, Equity, FX & Commodity Risk |
1. Which of the following risks and reasons justify the use of scenario analysis in operational risk modeling:
I. Risks for which no internal loss data is available
II. Risks that are foreseeable but have no precedent, internally or externally III. Risks for which objective assessments can be made by experts IV. Risks that are known to exist, but for which no reliable external or internal losses can be analyzed
V. Reducing the complexity of having to fit statistical models to internal and external loss data VI. Managing the capital estimation process as to produce estimates in line with management's desired capital buffers.
A) I, II, III and IV
B) V
C) I, II and III
D) All of the above
2. Which of the following distributions is generally not used for frequency modeling for operational risk
A) Binomial
B) Negative binomial
C) Poisson
D) Gamma
3. Company A issues bonds with a face value of $100m, sold at $98. Bank B holds $10m in face of these bonds acquired at a price of $70. Company A then defaults, and the recovery rate is expected to be 30%. What is Bank B's loss?
A) $7m
B) $2.1m
C) $4.9m
D) $4m
4. Which of the following is not a tool available to financial institutions for managing credit risk:
A) Credit derivatives
B) Cumulative accuracy plot
C) Third party guarantees
D) Collateral
5. When fitting a distribution in excess of a threshold as part of the body-tail distribution method described by the equation below, how is the parameter 'p' calculated.
Here, F(x) is the severity distribution. F(Tail) and F(Body) are the parametric distributions selected for the tail and the body, and T is the threshold in excess of which the tail is considered to begin.
A) p is a parameter estimated using either the sum of least squares or maximum likelihood estimation
B) If there are K observations up to the tail threshold, then p = k*n
C) If there are N observations, of which K are up to T, then p = k/N
D) p is a function of the reporting threshold and determined by the log-likelihood functional
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |
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