Free PRMIA 8010 Exam Dumps Questions & Answers

A loan portfolio's full notional value is $100, and its value in a worst case scenario at the 99% level of confidence is $65. Expected losses on the portfolio are estimated at 10%. What is the level of economic capital required to cushion unexpected losses?

• A.35
• B.10
• C.25
• D.65

Which of the following is true in relation to the application of Extreme Value Theory when applied to operational risk measurement?
I. EVT focuses on extreme losses that are generally not covered by standard distribution assumptions II. EVT considers the distribution of losses in the tails III. The Peaks-over-thresholds (POT) and the generalized Pareto distributions are used to model extreme value distributions IV. EVT is concerned with average losses beyond a given level of confidence

• A.II and III
• B.I, II and IV
• C.I and IV
• D.I, II and III

The Altman credit risk score considers:

• A.A historical database of the firms that have defaulted
• B.A combination of accounting measures and market values
• C.A quadratic approximation of the credit risk based on underlying risk factors
• D.A historical database of the firms that have survived

What would be the correct order of steps to addressing data quality problems in an organization?

• A.Assess the current state, design the future state, determine gaps and the actions required to be implemented to eliminate the gaps
• B.Design the future state, perform a gap analysis, analyze the current state and implement the future state
• C.Call in external consultants
• D.Articulate goals, do a 'strategy-fit' analysis and plan for action

For a corporate issuer, which of the following can be used to calculate market implied default probabilities?
I. CDS spreads
II. Bond prices
III. Credit rating issued by S&P
IV. Altman's scoring model

• A.II and III
• B.III and IV
• C.I, II and III
• D.I and II