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PRMIA 8010 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Risk Information & Monitoring | 15% | - Risk reporting and communication - Key Risk Indicators (KRIs) - Loss data collection and analysis |
| Risk Assessment | 20% | - Risk and Control Self-Assessment (RCSA) - Bottom-up process modeling - Residual risk and issue management - Top-down scenario analysis |
| Introduction to Operational Risk Management | 10% | - Risk management frameworks and principles - Embedding risk management practices - ESG and climate risk considerations |
| Risk Governance | 15% | - Risk culture and ethical conduct - Roles of first, second, and third lines of defense - Governance structures and responsibilities |
| Operational Risk Capital & Modeling | 10% | - Basic and advanced measurement methods - Basel III and recent developments - Capital requirements and approaches |
| Compliance & Regulatory Risk | 10% | - Basel Accords and global regulations - Compliance risk types and controls - Enterprise compliance frameworks |
| Risk Management Framework | 15% | - Risk capacity and risk appetite - Strategy and framework implementation - Risk policies, limits, and pricing |
| Operational Resilience | 5% | - Business continuity and recovery - DORA and resilience regulations - Third-party/vendor risk management |
PRMIA Operational Risk Manager (ORM) Sample Questions:
1. When compared to a high severity low frequency risk, the operational risk capital requirement for a low severity high frequency risk is likely to be:
A) Zero
B) Lower
C) Higher
D) Unaffected by differences in frequency or severity
2. Loss from a lawsuit from an employee due to physical harm caused while at work is categorized per Basel II as:
A) Unsafe working environment
B) Execution delivery and process management
C) Damage to physical assets
D) Employment practices and workplace safety
3. A bank expects the error rate in transaction data entry for a particular business process to be 0.005%. What is the range of expected errors in a day within +/- 2 standard deviations if there are 2,000,000 such transactions each day?
A) 80 to 120 errors in a day
B) 0 to 200 errors in a day
C) 90 to 110 errors in a day
D) 60 to 80 errors in a day
4. Which of the following need to be assumed to convert a transition probability matrix for a given time period to the transition probability matrix for another length of time:
I. Time invariance
II. Markov property
III. Normal distribution
IV. Zero skewness
A) I, II and IV
B) II and III
C) III and IV
D) I and II
5. The sum of the stand alone economic capital of all the business units of a bank is:
A) more than the economic capital for the firm as a whole
B) equalto the economic capital for the firm as a whole
C) unrelated to the economic capital for the firm as a whole
D) less than the economic capital for the firm as a whole
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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