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Last Updated: Oct 15, 2026

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PRMIA 8010 Practice Q&A's

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PRMIA 8010 Exam Syllabus Topics:

SectionObjectives
Topic 1: Regulatory and Industry Standards- Regulatory expectations for operational risk management
- Basel operational risk frameworks
Topic 2: Risk Governance and Frameworks- Three lines of defense model
- Risk governance structures and accountability
Topic 3: Measurement and Quantification- Key risk indicators (KRIs)
- Loss distribution approaches
Topic 4: Risk Identification and Assessment- Risk and control self-assessment (RCSA)
- Scenario analysis and risk mapping
Topic 5: Operational Risk Fundamentals- Risk taxonomy and loss event types
- Operational risk within enterprise risk management
- Definition and scope of operational risk
Topic 6: Mitigation and Control- Internal controls and control testing
- Risk transfer mechanisms including insurance

PRMIA Operational Risk Manager (ORM) Sample Questions:

Question #1

According to the Basel framework, reserves resulting from the upward revaluation of assets are considered a part of:

  • A. Tier 1 capital
  • B. Tier 2 capital
  • C. All of the above
  • D. Tier 3 capital
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

The probability of default of a security over a 1 year period is 3%. What is the probability that it would not have defaulted at theend of four years from now?

  • A. 11.47%
  • B. 88.00%
  • C. 88.53%
  • D. 12.00%
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

The CDS quote for the bonds of Bank X is 200 bps. Assuming a recovery rate of 40%, calculate the default hazard rate priced in the CDS quote.

  • A. 2.00%
  • B. 5.00%
  • C. 0.80%
  • D. 3.33%
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Correct Answer: D  🗳️

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Question #4

Which of the following distributions is generally not used for frequency modeling for operational risk

  • A. Poisson
  • B. Gamma
  • C. Negative binomial
  • D. Binomial
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Correct Answer: B  🗳️

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Question #5

If the annual default hazard rate for a borrower is 10%, what is the probability that there is no default at the end of 5 years?

  • A. 50.00%
  • B. 39.35%
  • C. 60.65%
  • D. 59.05%
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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