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8008 pdf
  • 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: Sep 12, 2026
  • Q & A: 359 Questions and Answers
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  • 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: Sep 12, 2026
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  • Exam Code: 8008
  • Exam Name: PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
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  • Q & A: 359 Questions and Answers
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PRMIA 8008 Exam Syllabus Topics:

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

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

Question #1

Fill in the blank in the following sentence:
Principal component analysis (PCA) is a statistical tool to decompose a ____________ matrix into its principal components and is useful in risk management to reduce dimensions.

  • A. Volatility
  • B. Positive semi-definite
  • C. Correlation
  • D. Covariance
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Prep4SureReview members. You can sign-up / login (it's free).

Question #2

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

Correct Answer: C  🗳️

Explanation: Only visible for Prep4SureReview members. You can sign-up / login (it's free).

Question #3

Altman's Z-score does not consider which of the following ratios:

  • A. Working capital to total assets
  • B. Net income to total assets
  • C. Sales to total assets
  • D. Market capitalization to debt
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Prep4SureReview members. You can sign-up / login (it's free).

Question #4

The sum of the stand alone economic capital of all the business units of a bank is:

  • A. unrelated to the economic capital for the firm as a whole
  • B. more than the economic capital for the firm as a whole
  • C. equal to the economic capital for the firm as a whole
  • D. less than the economic capital for the firm as a whole
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Prep4SureReview members. You can sign-up / login (it's free).

Question #5

The backtesting of VaR estimates under the Basel accord requires comparing the ex-ante VaR to:

  • A. hypothetical profit and loss keeping the positions constant
  • B. realized profit and loss for the period
  • C. ex-ante VaR calculated for the subsequent periods
  • D. the Basel accord does not require banks to backtest VaR estimates
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Prep4SureReview members. You can sign-up / login (it's free).

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