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ExamcollectionPass has come up with the latest and real PRMIA 8020 Exam Dumps that can solve these drastic problems for you. We guarantee that these questions will be enough for you to clear the ORM Certificate - 2023 Update (8020) examination on the first attempt. Doubtlessly, cracking the PRMIA 8020 test of the ORM Certificate - 2023 Update (8020) credential is one tough task but this task can be made easier if you prepare with ORM Certificate - 2023 Update (8020) practice questions of ExamcollectionPass.

PRMIA 8020 Exam Syllabus Topics:

Topic	Details
Topic 1	Risk Modeling: This section of the exam measures the skills of Quantitative Risk Analysts and covers mathematical and statistical techniques used to predict risk scenarios. It explores model development, validation, and application in financial and operational risk management. A key skill measured is applying statistical models for risk prediction.
Topic 2	Case Studies: This section of the exam measures the skills of Business Risk Consultants and covers real-world applications of risk management concepts. It examines case studies on risk governance, assessment, and mitigation strategies across different industries. A key skill measured is analyzing historical risk events for strategic insights.
Topic 3	Risk Information: This section of the exam measures the skills of Risk Managers and covers the collection, analysis, and communication of risk-related data. It highlights the role of data-driven decision-making in mitigating uncertainties and ensuring compliance. A key skill measured is interpreting risk data for informed decision-making.
Topic 4	Risk Assessment: This section of the exam measures the skills of Financial Risk Analysts and covers methodologies for evaluating risks in different domains, including qualitative and quantitative approaches. It focuses on assessing vulnerabilities, threats, and potential impacts on business operations. A key skill measured is conducting risk impact analysis for financial threats.
Topic 5	Introduction: This section of the exam measures the skills of Risk Analysts and covers fundamental concepts of risk governance, management, and assessment. It introduces key principles, regulatory frameworks, and industry best practices for identifying and addressing risks. A key skill measured is understanding the foundational principles of risk management.

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PRMIA ORM Certificate - 2023 Update Sample Questions (Q60-Q65):

NEW QUESTION # 60
For the WorldCom case, what was one of the causes of the failure?

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

Answer: C

Explanation:
Step 1: Understanding the WorldCom Case
WorldCom was one of the largest U.S. telecom companies before its collapse in 2002 due to fraudulent accounting practices and poor risk management.
The company expanded aggressively through acquisitions but failed to integrate them properly, leading to financial mismanagement and accounting fraud.
Step 2: Why Option C is Correct
WorldCom acquired over 60 companies in a short period without proper integration.
This masked financial problems and led to $11 billion in fraudulent accounting adjustments.
PRMIA and risk management frameworks stress that poor integration after rapid acquisitions increases operational and financial risks.
Step 3: Why the Other Options Are Incorrect
Option A ("Risk models and mortgage underwriting") → Incorrect because this describes the 2008 financial crisis, not WorldCom.
Option B ("Lack of a CRO during IPO") → Incorrect because WorldCom was well-established before its fraud-CRO absence was not the main issue.
Option D ("Unauthorized derivatives trading") → Incorrect because WorldCom's failure was due to fraudulent accounting, not derivatives.
PRMIA Risk Reference Used:
PRMIA Corporate Governance Guidelines - Discusses risks of poor post-merger integration.
SEC Investigation on WorldCom (2002) - Identified fraudulent accounting due to failed acquisitions.

NEW QUESTION # 61
Team supervisors are key in the development and maintenance of the risk culture because they are:

A. Visible to regulators and can describe the firm's risk culture to their board.
B. Visible to regulators and can describe the firm's risk culture to inspection teams.
C. Connected with every employee, every day, and can ensure desired behaviors are followed by all.
D. More experienced than the employees that report to them.

Answer: C

Explanation:
Team supervisors play a critical role in shaping and maintaining an organization's risk culture. PRMIA's Risk Governance Framework and Risk Culture Principles emphasize that supervisors act as the link between risk policies and frontline employees, ensuring that risk-aware behaviors are consistently followed.
Step 1: Role of Supervisors in Risk Culture Development
Supervisors engage with employees daily, providing guidance on risk-based decision-making.
They reinforce risk policies, standards, and expectations set by senior management.
Supervisors identify behavioral trends that may indicate risk culture weaknesses.
Step 2: Supervisors as Enforcers of Risk Culture
PRMIA's Risk Culture Framework stresses that risk culture must be embedded into daily operations through supervisor-led enforcement.
Supervisors monitor, correct non-compliant behaviors, and provide ongoing risk awareness training.
Their proximity to employees allows them to detect early warning signs of risk issues.
Step 3: Why the Other Options Are Incorrect
Option A: "More experienced than the employees that report to them."
Experience alone does not establish or maintain a risk culture.
A risk culture is about behaviors and practices, not just expertise.
Option B: "Visible to regulators and can describe the firm's risk culture to inspection teams." While supervisors may interact with regulators, their primary role is to engage with employees daily rather than acting as spokespersons.
Option D: "Visible to regulators and can describe the firm's risk culture to their board." Boards typically rely on Chief Risk Officers (CROs) or senior executives to communicate risk culture, not direct supervisors.
PRMIA Risk Reference Used:
PRMIA Risk Culture Framework - Highlights the role of supervisors in ensuring risk-aware behaviors.
PRMIA Risk Governance Framework - Stresses that frontline supervisors must enforce risk management policies.
PRMIA Risk Awareness Guidelines - Reinforces daily interaction as a key factor in maintaining a strong risk culture.
Final Conclusion:
Supervisors directly influence employees' behaviors and ensure that risk culture is consistently followed, making Option C the correct answer.

NEW QUESTION # 62
Which of the follow is not included in PRMIA's 10 principles of good governance?

A. Holding the PRM Designation.
B. External validation.
C. Risk appetite.
D. Clear accountability.

Answer: A

Explanation:
PRMIA's 10 Principles of Good Governance
PRMIA outlines 10 key principles that focus on risk governance, accountability, transparency, and risk management effectiveness.
These principles ensure strong risk governance structures for financial institutions.
Why Answer B is Correct
Holding the PRM Designation (Professional Risk Manager certification) is NOT a governance principle.
While PRMIA promotes risk education, governance principles focus on organizational risk structures, not individual certifications.
Why Other Answers Are Incorrect
Option
Explanation:
A . Risk appetite.
Correct - PRMIA governance principles include establishing a clear risk appetite.
C . External validation.
Correct - External audits and validation improve governance and risk transparency.
D . Clear accountability.
Correct - Governance principles emphasize clear accountability at all levels of management.
PRMIA Reference for Verification
PRMIA 10 Principles of Good Governance
Basel Corporate Governance Guidelines for Financial Institutions

NEW QUESTION # 63
For the National Australia Bank - FX Options case study, large and unusual transaction activity was a concern for what reason?

A. Deep-in-the-money options aided in the smoothing of losses.
B. Complex structured transactions aided in the smoothing of losses.
C. Deep-in-the-money options and other complex structured transactions aided in the smoothing of profits and losses.
D. Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.

Answer: C

Explanation:
The National Australia Bank (NAB) FX Options Case Study is a well-known example of operational risk, fraud, and governance failure.
What Happened?
Traders engaged in unauthorized foreign exchange (FX) options trading, using deep-in-the-money options and other complex instruments.
They manipulated profits and losses to smooth earnings and mislead risk managers and auditors.
Why Answer C is Correct
The traders smoothed both profits and losses to avoid detection and ensure continued trading bonuses.
This aligns with PRMIA's Operational Risk Management Guidelines, which highlight that hidden trading losses and smoothing techniques increase financial crime risk.
Why Other Answers Are Incorrect
Option
Explanation:
A . Complex structured transactions aided in the smoothing of losses.
Incorrect - Smoothing occurred with both profits and losses, not just losses.
B . Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.
Incorrect - Profits were also manipulated, making this answer incomplete.
D . Deep-in-the-money options aided in the smoothing of losses.
Incorrect - This focuses only on deep-in-the-money options and ignores other structured transactions involved in the fraud.
PRMIA Reference for Verification
PRMIA Fraud and Risk Management Case Studies
Basel Principles on Market Risk and Internal Control Failures

NEW QUESTION # 64
In the Basel III standardized approach for operational risk, what is the Business Indicator?

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

Answer: C

Explanation:
Step 1: Definition of the Business Indicator (BI) in Basel III
The Business Indicator (BI) is a financial-statement-based metric used in Basel III's Standardized Approach for Operational Risk.
It replaces previous approaches by using financial figures (e.g., revenue, fees, interest income) to estimate operational risk exposure.
Step 2: Why Option D Is Correct
The BI uses financial-statement data to calculate operational risk capital requirements.
It acts as a proxy for a bank's operational risk exposure by linking operational risk to its financial size and complexity.
Step 3: Why the Other Options Are Incorrect
Option A ("Proxy for near-miss events") → Incorrect because BI is based on financial data, not near-miss risk events.
Option B ("Non-financial-statement-based proxy") → Incorrect because BI is explicitly derived from financial statements.
Option C ("Scaling factor based on historical losses") → Incorrect because BI does not use historical losses directly-it relies on financial-statement inputs.
PRMIA Risk Reference Used:
Basel III Operational Risk Framework - Defines the Business Indicator as a financial-statement-based metric.
PRMIA Operational Risk Guidelines - Explains the BI's role in capital calculations.

NEW QUESTION # 65
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NEW EXAM 8020 MATERIALS | 8020 REAL EXAM QUESTIONS

New Exam 8020 Materials | 8020 Real Exam Questions