Latest Verified & Correct PRMIA 8020 Questions & Answers Daily Updated [Q19-Q37]

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Latest Verified & Correct PRMIA 8020 Questions & Answers Daily Updated

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PRMIA 8020 Exam Syllabus Topics:

Topic	Details
Topic 1	Risk Assessment: This section of the exam measures the skills of Financial Risk Analysts and covers methodologies for evaluating risks in different domains, including qualitative and quantitative approaches. It focuses on assessing vulnerabilities, threats, and potential impacts on business operations. A key skill measured is conducting risk impact analysis for financial threats.
Topic 2	Risk Governance: This section of the exam measures the skills of Compliance Officers and covers the policies, structures, and processes that define how organizations oversee risk. It explores regulatory compliance, ethical considerations, and corporate governance frameworks to ensure accountability. A key skill measured is applying governance frameworks to organizational risk policies.
Topic 3	Introduction: This section of the exam measures the skills of Risk Analysts and covers fundamental concepts of risk governance, management, and assessment. It introduces key principles, regulatory frameworks, and industry best practices for identifying and addressing risks. A key skill measured is understanding the foundational principles of risk management.
Topic 4	Case Studies: This section of the exam measures the skills of Business Risk Consultants and covers real-world applications of risk management concepts. It examines case studies on risk governance, assessment, and mitigation strategies across different industries. A key skill measured is analyzing historical risk events for strategic insights.
Topic 5	Insurance Mitigation: This section of the exam measures the skills of Insurance Risk Managers and covers strategies for transferring risk through insurance and other financial instruments. It focuses on risk transfer mechanisms, policy structuring, and claims management. A key skill measured is assessing risk transfer options through insurance.

NEW QUESTION 19
For which of the following reasons did the Turnbull Report have a significant impact on risk governance?

It defined the concept of risk governance for the insurance industry.

It was the first report to list the board as a proposed governance structure.

It was the first report to require a board to take specific account of risks and control systems for risks.

It was a report that led to the establishment of the US Federal Reserve.

NEW QUESTION 20
Process mapping is:

A useful tool for understanding process intensive activities.

A helpful tool for understanding where control gaps may exist.

A good visualization tool for understanding where hand-offs and hand-ins may occur.

All of the above.

NEW QUESTION 21
For the National Australia Bank – FX Options case study, large and unusual transaction activity was a concern for what reason?

Complex structured transactions aided in the smoothing of losses.

Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.

Deep-in-the-money options and other complex structured transactions aided in the smoothing of profits and losses.

Deep-in-the-money options aided in the smoothing of losses.

NEW QUESTION 22
For the TSB case what was the cause of the outage at the heart of the case?

A liquidity squeeze by a major hedge-fund via margin calls on trading positions resulted in the collapse of their website.

Sub-standard risk pricing and risk management left millions of people locked out of their accounts for weeks.

A failed attempts to move customers to a new IT system left millions of people locked out of their accounts for weeks.

Their IT models did not work if prices were discontinuous.

NEW QUESTION 23
Which of the following are the most relevant ways a firm can ensure they are in line with consumer protection?

Engage with consumers once there are enough complaints.

Add a consumer protection section to all reports.

Treat customers fairly, place customer interests ahead of its own and keep promises to customers

This risk cannot be managed.

NEW QUESTION 24
Which of the below is a definition of climate risk?

Climate risk has been moved out of all risk taxonomies due to international agreement.

Climate risk refers to the growing impacts of credit risk on the business environment.

Climate risk refers to change in the business climate during a recession.

Climate risk refers to the growing impacts that businesses and our overall society may face due to climate change.

NEW QUESTION 25
The The Task Force on Climate-related Financial Disclosures (TCFD) was founded by which body?

The Financial Stability Board (FSB).

The European Commission (EC).

The United Nations (UN).

The World Bank (WB).

NEW QUESTION 26
Two of the four key resources that are regarded as critical to maintain confidence and calibrate Risk Appetite to are?

Capital expenditure and liquidity.

Net earnings and capital.

Strong regulatory assessment and net earnings.

Quality human resources and reputation.

NEW QUESTION 27
What are some of the deficiencies associated with bottom-up Key Risk Indicators?

Mandates from a board that are too restrictive to implement.

Causal affects that are not adequately understood.

Not reported frequently enough.

Lack of granularity.

NEW QUESTION 28
How should Near Misses and Opportunity Costs be treated within Operational Risk?

Ignored.

Recorded and Analyzed. Used in calculation of Operational Risk Capital.

Reported. Recorded and Analyzed. Not Used in calculation of Operational Risk Capital.

Reported, Recorded and Analyzed, Used in calculation of Operational Risk Capital.

NEW QUESTION 29
Under the previous Basel II approach, which was not an approach for operational risk?

Basic Indicator Approach (BIA).

The Standardized Approach (TSA).

Advanced Measurement Approach (AMA).

Alternative Measurement Approach (AMA).

NEW QUESTION 30
For the Barings case study, what external event may have accelerated the discovery of the loss event?

The collapse of Lehman Brothers into bankruptcy in 2002.

The Singapore earthquake of January 17th 1995.

The collapse of Lehman Brothers into bankruptcy m 2008.

The Kobe earthquake of January 17th 1995.

NEW QUESTION 31
Which of the following principles is critical when creating the optimum policy range and content’?

Policies should be divided into a large number of short topics to enhance accessibility.

Policy owners must ensure that policies are read by the regulator and then the shareholders.

Hard copies of a new policy should be placed in a central library of governance documents at the CRO’s home.

New policies should be accompanied by Citable training for the target audience and added to the content of new employee training.

NEW QUESTION 32
For the WorldCom case, what was one of the causes of the failure?

Risk models that did not reflect loosened underwriting standards of mortgage originators.

The lack of a CRO during the final IPO.

A rapid pace of acquisitions and poor integration of acquired companies.

Unauthorized trading in derivatives.

NEW QUESTION 33
Compliance departments traditionally provide policy, oversight, and set the standards for monitoring personal dealing. Which control below would assist in implementing such policies?

A list of approved suppliers that have been added to the outsourcing policy.

Outsourcing of the policy writing to an accounting firm at least once every 5 years.

Watch lists of stocks that are not allowed to be traded for a period of time, for instance, ahead of a securities offering that the firm is managing.

Outsourcing of the policy writing to an accounting firm at least once every 3 years.

NEW QUESTION 34
For credit risk losses containing operational risk elements that have been historically included in an organizations’ credit risk database how should the loss amount be treated?

The entire loss amount is treated as credit risk

The entire loss amount is treated as operational risk.

The loss amount is split into credit and operational risk components.

The entire loss amount is treated as credit risk, but the loss is entered as a memorandum within the operational loss database and not used for capital modeling purposes.

NEW QUESTION 35
For the FTX case study, what was the “backdoor” used for?

It allowed a stable coin to be removed from the ledger and added to the balance sheet.

It allowed trading firm Alameda to borrow S65 billion of clients’ money from the exchange without their permission.

It allowed currency traders to smooth profits and conceal losses for over two years.

It allowed a rapid pace of acquisitions but poor integration of acquired companies.

NEW QUESTION 36
Which of the follow does the risk function typically have responsibility for?

Documenting its activities, typically by operating and then recording the daily operation of controls.

Documenting its activities, typically by developing a Risk Management Manual and set of Risk Policies.

Putting in place the servers, firewalls and software to ensure cyber security.

Creating a trial balance, balance sheet statement and cash flow statement.

NEW QUESTION 37
What are some of the properties of Bottom-Up KRIs?

Seated by senior management: tied to internal loss events at the legal entity, country, business and / or product level, reported.
daily, weekly or monthly.

Selected by local management, based on key controls or weaknesses identified by audit reports, reported on quarterly.

Are not used due to changes in regulations.

Selected by local management: tied to internal loss events at the legal entity, country, business and / or product level, reported daily, weekly or monthly.

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Latest Verified & Correct PRMIA 8020 Questions & Answers Daily Updated [Q19-Q37]

PRMIA 8020 Exam Syllabus Topics:

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