RELIABLE PRMIA 8011 TEST SAMPLE - RELIABLE 8011 DUMPS SHEET

Reliable PRMIA 8011 Test Sample - Reliable 8011 Dumps Sheet

Reliable PRMIA 8011 Test Sample - Reliable 8011 Dumps Sheet

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Tags: Reliable 8011 Test Sample, Reliable 8011 Dumps Sheet, 100% 8011 Accuracy, 8011 Exam Training, 8011 Exam Outline

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The Professional Risk Managers' International Association (PRMIA) is a non-profit organization that offers globally recognized certifications in risk management. The PRMIA 8011 (Credit and Counterparty Manager (CCRM) Certificate) Certification Exam is designed to validate the knowledge and skills of professionals in the field of credit and counterparty risk management. 8011 exam covers a wide range of topics, including credit analysis, credit risk mitigation, counterparty risk management, and regulatory compliance.

PRMIA 8011 exam comprises 80 multiple-choice questions and requires a minimum score of 60% to pass. 8011 exam is proctored and may be completed online or at a designated testing center. The questions cover a broad range of topics including credit risk measurement and management, counterparty credit risk, market risk, legal documentation, and regulatory requirements.

The Credit and Counterparty Manager (CCRM) Certificate Exam certification program aims to provide a structured approach to the credit risk management process, including the assessment of creditworthiness, the analysis of credit risk metrics, and the implementation of appropriate risk mitigation strategies. The program also covers counterparty risk management, which involves evaluating the risk associated with counterparties that have contractual obligations with a financial institution. Credit and Counterparty Manager (CCRM) Certificate Exam certification program is highly reputable in the finance sector and is recognized globally, making it highly sought-after by professionals who want to excel in their career.

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Reliable 8011 Dumps Sheet | 100% 8011 Accuracy

Our 8011 study questions in every year are summarized based on the test purpose, every answer is a template, there are subjective and objective 8011 exams of two parts, we have in the corresponding modules for different topic of deliberate practice. To this end, our 8011 training materials in the qualification exam summarize some problem- solving skills, and induce some generic templates. The user can scout for answer and scout for score based on the answer templates we provide, so the universal template can save a lot of precious time for the user to study and pass the 8011 Exam.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q220-Q225):

NEW QUESTION # 220
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. Probability of default
  • B. Effective maturity
  • C. Loss given default
  • D. Exposure at default

Answer: A


NEW QUESTION # 221
Which of the following are valid objectives of a reverse stress test:
I. Ensure that a firm can survive for long enough after risks have materialized for it to either regainmarket confidence, restructure or be sold, or be closed down in an orderly manner, II. Discover the vulnerabilities of the current business plan, III. Better integrate business and capital planning, IV. Create a 'zero-failure' environment at the systemic level in the financial sector

  • A. I, II and III
  • B. I and IV
  • C. II and III
  • D. All of the above

Answer: A

Explanation:
Statement I is true. According to the statement CP08/24: Stress and scenario testing (December 2008) issued by the FSA in the UK, an underlying objective of reverse stress tests is to ensure that a firm can survive long enough after risks have crystallized for one of the following to occur:
- the market decides that its lack of confidence is unfounded and recommences transacting with the firm;
- the firm down-sizes and re-structures its business;
- the firm is taken over, or its business is transferred in an orderly manner; or
- public authorities take the firm over, or wind down its business in an orderly manner.
Statement II and III are true. The same statement clarifies the intention of the reverse stress testing requirement, which is to encourage firms to: explore more fully the vulnerabilities of theirbusiness model (including 'tail risks'); make decisions that better integrate business and capital planning; and improve their contingency planning.
Statement IV is incorrect. Since the question is asking for the statement which is NOT an objective for reverse stress tests, Choice 'b' is the correct answer. The same statement clarifies that the introduction of a reverse- stress test requirement should not be interpreted as indicating that the FSA is pursuing a 'zero-failure' policy.
In the FSA's view, such a policy is neither possible, nor desirable.


NEW QUESTION # 222
Under the contingent claims approach to credit risk, risk increases when:
I. Volatility of the firm's assets increases
II. Risk free rate increases
III. Maturity of the debt increases

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

Answer: B

Explanation:
Under the contingent claims approach, credit risk is evaluated as the value of the put on the firm's assets with a strike price equal to the face value of the debt and maturity equal to the maturity of the obligation. The Black Scholes model can then be used to value the put, and therefore an increase in volatility and the time to expiry (ie maturity) will increase the value of the debt. An increase in the risk free rate will actually reduce the value of the put, therefore statements I and III are correct and Choice 'b' is the correct answer.


NEW QUESTION # 223
Which of the following statements are true:
I. Shocks to risk factors should be relative rather than absolute if we wish to avoid a change in thesign of the risk factor.
II. Interest rate shocks are generally modeled as absolute shocks.
III. Shocks to volatility are generally modeled as absolute shocks.
IV. Shocks to market spreads are generally modeled as relative shocks.

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

Answer: A

Explanation:
Suppose during a historical event interest rates rose from 2% to 2.25%. This can be understood as a change of either 25 basis points, or a change of 12.5%. When applied to the current portfolio when interest rates are
0.50%, we may model this 'shock' as either a rise to 0.75%, or 0.5625% (ie a rise of 12.5% over existing levels). The former is called an absolute shock, and the latter a relative shock.
I is true as relative shocks can never change the sign of a risk factor. Yet interest rate changes are modeled as absolute changes as relative shocks can get artificially amplified or attenuated if the current level of interest rates is too different from those that existed during the crisis being modeled. Therefore II is true. III and IV are false as volatility is modeled as a relative shock and spreads are modeled as absolute shocks.


NEW QUESTION # 224
Which of the following should be included when calculating the Gross Income indicator used to calculate operational risk capital under the basic indicator and standardized approaches under Basel II?

  • A. Operating expenses
  • B. Fees paid to outsourcing service proviers
  • C. Net non-interest income
  • D. Insurance income

Answer: C

Explanation:
Gross income is defined by Basel II (see para 650 of the Basel standard) as net interest income plusnet non- interest income. It is intended that this measure should: (i) be gross of any provisions (e.g. for unpaid interest); (ii) be gross of operating expenses, including fees paid to outsourcing service providers; (iii) exclude realised profits/losses from the sale of securities in the banking book; and (iv) exclude extraordinary or irregular items as well as income derived from insurance.
What this means is that gross income is calculated without deducting any provisions or operating expenses from net interest plus non-interest income; and does not include any realised profits or losses from the sale of securities in the banking book, and also does not include any extraordinary or irregular item or insurance income.
Therefore operating expenses are to be not to be deducted for the purposes of calculating gross income, and neither are any provisions. Profits and losses from the sale of banking book securities are not considered part of gross income, and so isn't any income from insurance or extraordinary items.
Of the listed choices, only net non-interest income needs to be included for gross income calculations, and the others are to be excluded. Therefore Choice 'd' is the correct answer. Try to remember the components of gross income from the definition above because in the exam the question may be phrased differently.


NEW QUESTION # 225
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