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: Apr 27, 2026

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Question 1

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

Question 2

Once the frequency and severity distributions for loss events have been determined, which of the following is an accurate description of the process to determine a full loss distribution for operational risk?

A : firm wide operational risk distribution is generated by adding together the frequency and severity distributions

B : firm wide operational risk distribution is generated using Monte Carlo simulations

C : firm wide operational risk distribution is set to be equal to the product of the frequency and severity distributions

D : frequency distribution alone forms the basis for the loss distribution for operational risk

Answer: B

Question 3

According to Basel II's definition of operational loss event types, losses due to acts by third parties intended to defraud, misappropriate property or circumvent the law are classified as

A : ternal fraud

B : ecution delivery and system failure

C : ternal fraud

D : ird party fraud

Answer: C

Question 4

There are two bonds in a portfolio, each with a marketvalue of $50m. The probability of default of the two bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one year expected loss on this portfolio?

A : $11m

B : $5.26m

C : $5.5m

D : $1.38m

Answer: C

Question 5

The key difference between 'top down models' and 'bottom up models' foroperational risk assessment is:

A : p down approaches to operational risk are based upon an analysis of key risk drivers, while bottom up approaches consider causality in risk scenarios.

B : ttom up approaches to operational risk are based upon an analysis of key risk drivers, while top down approaches consider causality in risk scenarios.

C : ttom up approaches to operational risk calculate the implied operational risk using available data such as income volatility, capital etc; while top down approaches use causal factors, risk drivers and other factors to get an aggregated estimate of risk

D : p down approaches to operational risk calculate the implied operational risk using available data such as income volatility, capital etc; while bottom up approaches use causal factors, risk drivers and other factors to get an aggregated estimate of risk.

Answer: D

Page: 1 / 49

Total 242 Questions | Updated On: Apr 27, 2026

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