Free PRMIA 8010 Exam Questions

Become PRMIA Certified with updated 8010 exam questions and correct answers

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Total 242 Questions | Updated On: Mar 07, 2026

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Question 1

Under the internal ratings based approach for risk weighted assets, for which of the following parameters must each institution make internal estimates (as opposed to relying upon values determined by a national supervisor):

A : obability of default

B : fective maturity

C : given default

D : posure at default

Answer: A

Question 2

Whichof the following statements are true in relation to Historical Simulation VaR?

I. Historical Simulation VaR assumes returns are normally distributed but have fat tails

II. It uses full revaluation, as opposed to delta or delta-gamma approximations

III. Acorrelation matrix is constructed using historical scenarios

IV. It particularly suits new products that may not have a long time series of historical data available

A :

B : and III

C : and IV

D : l of the above

E :

Answer: A

Question 3

Which of the following is a cause ofmodel risk in risk management?

A : ogramming errors

B : pecification of the model

C : correct parameter estimation

D : l of the above

Answer: D

Question 4

Which of the following is true for the actuarial approach to credit risk modeling (CreditRisk+):

A : fault correlations between obligors are accounted for using a multivariate normal model

B : number ofdefaults is modeled using a binomial distribution where the number of defaults are considered discrete events

C : approach considers only default risk, and ignores the risk to portfolio value from credit downgrades

D : approach is based upon historical rating transition matrices

Answer: C

Question 5

Which of the following statements are true:

I.Top down approaches help focus management attention on the frequency and severity of loss events, while

bottom up approaches do not.

II. Top down approaches rely upon high level data while bottom up approaches need firm specific risk data to

estimate risk.

III. Scenario analysis can help capture both qualitative and quantitative dimensions of operational risk.

A : I only

B : and III

C : only

D : only

Answer: B

Page: 1 / 49

Total 242 Questions | Updated On: Mar 07, 2026

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