Free PRMIA 8020 Exam Dumps Questions & Answers

Internal loss data (ILD) consists of what kind of data?

• A.It consists of the Key Risk Indicators of a bank.
• B.It consists of historical operational loss incidents of a bank.
• C.It consists of scenario data develeloped to calcuate the future operational loss incidents of a bank.
• D.It consists of near miss operational loss incidents of a bank.

When a single operational risk event leads to losses in multiple business lines or impacts across several event types, how should these linked losses be treated?

• A.Either allocate entire loss to the business line for which the loss is greatest or pro-rate the loss across the affected business line.
• B.Each business line should take it's own discretion as to how the losses are treated.
• C.Pro-rate the loss across the affected business line.
• D.Allocate entire loss to the business line for which the loss is greatest.

In relation to financial crime. OFAC is a definition for which organization?

• A.Office of Foreign Asset Control.
• B.Office of Foreigner and other Control.
• C.Office of Financial Asset Control.
• D.Office for Asset Control.

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

• A.Unauthorized trading in derivatives.
• B.The lack of a CRO during the final IPO.
• C.A rapid pace of acquisitions and poor integration of acquired companies.
• D.Risk models that did not reflect loosened underwriting standards of mortgage originators.

In the Basel III standardized approach for operational risk, what is the Business Indicator?

• A.It is a scaling factor that is based on a bank's average historical losses.
• B.It is a proxy for operational risks that relate to near-miss events.
• C.It is a non-financial-statement-based proxy for operational risk.
• D.It is a financial-statement-based proxy for operational risk.