Try PRMIA : 8011 valid & accurate questions and answers

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PRMIA 8011 Exam Overview:

Certification Vendor:PRMIA
Exam Name:Credit and Counterparty Risk Management (CCRM) Certificate Exam
Exam Number:8011
Certificate Validity Period:No expiration
Passing Score:60%
Exam Format:Multiple Choice
Exam Duration:120 minutes
Exam Price:$529 USD
Available Languages:English
Real Exam Qty:60
Related Certifications:PRM Designation
Market, Liquidity and Asset Liability Risk Management (MLARM)
Operational Risk Management (ORM)
Sample Questions:PRMIA 8011 Sample Questions
Exam Way:Pearson VUE test centers and online remote proctoring
Pre Condition:Candidates must have a PRMIA account. No formal prerequisite exams are required.
Official Syllabus URL:https://prmia.org/Public/Public/Certificate/CCRM_.aspx

PRMIA 8011 Exam Syllabus Topics:

SectionObjectives
Topic 1: Standardized Approach for Counterparty Credit Risk- SA-CCR framework
  • 1. Potential future exposure calculation
  • 2. Replacement cost
- Regulatory capital treatment
  • 1. Basel framework application
  • 2. Exposure measurement
Topic 2: Credit Derivatives and Securitization- Credit derivatives
  • 1. Total return swaps
  • 2. Credit default swaps
- Securitization structures
  • 1. Collateralized debt obligations
  • 2. Asset-backed securities
Topic 3: Modern Credit Risk Modeling- PD/LGD modeling
  • 1. Exposure at default
  • 2. Loss given default
  • 3. Probability of default
- Portfolio risk models
  • 1. Value at Risk models
  • 2. Stress testing
Topic 4: Classic Credit Risk Methodology- Traditional credit analysis
  • 1. Credit assessment frameworks
  • 2. Financial statement analysis
- Risk management practices
  • 1. Credit approval processes
  • 2. Risk rating systems
Topic 5: CVA and DVA- Credit valuation adjustment
  • 1. CVA measurement
  • 2. CVA interpretation
- Debit valuation adjustment
  • 1. DVA calculation
  • 2. Accounting treatment
Topic 6: Counterparty Risk- Counterparty exposure
  • 1. Current exposure
  • 2. Potential future exposure
- Risk mitigation
  • 1. Netting
  • 2. Collateral management
Topic 7: Management of CVA and DVA- Operational implementation
  • 1. Regulatory considerations
  • 2. Pricing adjustments
- CVA management techniques
  • 1. Hedging strategies
  • 2. Risk mitigation frameworks
Topic 8: Credit Portfolio Management- Portfolio monitoring
  • 1. Diversification
  • 2. Concentration risk
- Risk-adjusted performance
  • 1. RAROC
  • 2. Economic capital
Topic 9: Classic Credit Products and Lifecycle- Credit lifecycle management
  • 1. Workout and recovery
  • 2. Origination
  • 3. Monitoring
- Traditional credit products
  • 1. ESG and green lending products
  • 2. Retail lending
  • 3. Corporate lending

PRMIA Credit and Counterparty Manager (CCRM) Certificate Sample Questions:

Question 1

Which of the following is the most accurate description of EPE (Expected Positive Exposure):

A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
B. The maximum average credit exposure over a period of time
C. Weighted average of the future positive expected exposure across a time horizon.
D. The average of the distribution of positive exposures at a specified future date


Question 2

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


Question 3

The 99% 10-day VaR for a bank is $200mm. The average VaR for the past 60 days is $250mm, and the bank specific regulatory multiplier is 3. What is the bank's basic VaR based market risk capital charge?

A. $200mm
B. $750mm
C. $600mm
D. $250mm


Question 4

Which of the following are valid approaches for extreme value analysis given a dataset:
I. The Block Maxima approach
II. Least squares approach
III. Maximum likelihood approach
IV. Peak-over-thresholds approach

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


Question 5

A stock that follows the Weiner process has its future price determined by:

A. its expected return and standard deviation
B. its current price, expected return and standard deviation
C. its standard deviation and past technical movements
D. its expected return alone


Solutions:

Question 1
Answer: C
Question 2
Answer: D
Question 3
Answer: B
Question 4
Answer: C
Question 5
Answer: B

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