Latest PDF of 8010: Operational Risk Manager (ORM)

Operational Risk Manager (ORM) Practice Test

8010 exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

Exam Specification: 8010 Operational Risk Manager (ORM)

Exam Name: 8010 Operational Risk Manager (ORM)
Exam Code: 8010
Exam Duration: 3 hours
Passing Score: Not specified
Exam Format: Multiple-choice
Exam Delivery: Proctored online or at a testing center

Course Outline:

1. Introduction to Operational Risk Management
- Overview of operational risk and its importance
- Key concepts and terminology in operational risk management
- Roles and responsibilities of operational risk managers

2. Risk Assessment and Measurement
- Identification and categorization of operational risks
- Risk assessment techniques (qualitative and quantitative)
- Key risk indicators (KRIs) and risk measurement methodologies

3. Risk Control and Mitigation
- Designing and implementing risk control measures
- Risk mitigation strategies and best practices
- Controls monitoring and testing

4. Operational Risk Monitoring and Reporting
- Establishing an effective risk monitoring framework
- Key metrics and reporting requirements
- Role of technology in operational risk monitoring and reporting

5. Operational Risk Governance and Culture
- Roles and responsibilities of senior management and the board
- Establishing an effective operational risk governance framework
- Building a strong risk culture within the organization

6. Regulatory Environment and Compliance
- Overview of relevant regulatory requirements and guidelines
- Compliance management and reporting
- Role of operational risk management in regulatory compliance

7. Incident Management and Business Continuity
- Incident identification, reporting, and escalation processes
- Incident response and recovery planning
- Business continuity management and disaster recovery

Exam Objectives:

1. Understand the fundamentals and key concepts of operational risk management.
2. Assess and measure operational risks using appropriate techniques and methodologies.
3. Implement risk control measures and develop risk mitigation strategies.
4. Monitor and report on operational risks using relevant metrics and reporting frameworks.
5. Establish effective operational risk governance and foster a strong risk culture.
6. Comply with regulatory requirements and manage operational risk in compliance.
7. Manage incidents effectively and ensure business continuity and disaster recovery.

Exam Syllabus:

Section 1: Introduction to Operational Risk Management (15%)
- Definition and importance of operational risk management
- Operational risk terminology and concepts
- Role of operational risk managers

Section 2: Risk Assessment and Measurement (20%)
- Identification and categorization of operational risks
- Qualitative and quantitative risk assessment techniques
- Key risk indicators (KRIs) and risk measurement methodologies

Section 3: Risk Control and Mitigation (20%)
- Designing and implementing risk control measures
- Risk mitigation strategies and best practices
- Controls monitoring and testing

Section 4: Operational Risk Monitoring and Reporting (15%)
- Establishing an effective risk monitoring framework
- Key metrics and reporting requirements
- Role of technology in operational risk monitoring and reporting

Section 5: Operational Risk Governance and Culture (10%)
- Roles and responsibilities of senior management and the board
- Operational risk governance framework
- Building a strong risk culture within the organization

Section 6: Regulatory Environment and Compliance (10%)
- Overview of regulatory requirements and guidelines
- Compliance management and reporting
- Role of operational risk management in regulatory compliance

Section 7: Incident Management and Business Continuity (10%)
- Incident identification, reporting, and escalation processes
- Incident response and recovery planning
- Business continuity management and disaster recovery

100% Money Back Pass Guarantee

8010 PDF sample Questions

8010 sample Questions

8010 Dumps
8010 Braindumps
8010 Real Questions
8010 Practice Test
8010 actual Questions
killexams.com
PRMIA
8010
Operational Risk Manager (ORM)
https://killexams.com/pass4sure/exam-detail/8010
Question: 88
What would be the correct order of steps to addressing data quality problems in an organization?
1. Assess the current state, design the future state, determine gaps and the actions required to be implemented to eliminate the gaps
2. Articulate goals, do a �strategy-fit� analysis and plan for action
3. Design the future state, perform a gap analysis, analyze the current state and implement the future state
4. Call in external consultants
Answer: A Explanation:
The correct answer is choice �a�
The correct order of steps to addressing data quality problems in an organization would include:
Question: 89
Which of the following is not a permitted approach under Basel II for calculating operational riskcapital
1. the internal measurement approach
2. the basic indicator approach
3. the standardized approach
4. the advanced measurement approach
Answer: A Explanation:
The Basel II framework allows the use of the basic indicator approach, the standardized approach and the advanced measurement approaches for operational risk. There is no approach called the �internal measurement approach� permitted for operational risk. Choice �a� is therefore the correct answer.
Question: 90
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?
1. 80 to 120 errors in a day
2. 60 to 80 errors in a day
3. 0 to 200 errors in a day
4. 90 to 110 errors in a day
Answer: A
Explanation:
Error rates are generally modeled using thePoisson distribution. Recall that the Poisson distribution has only one parameter � � which is its mean and also its variance. In the given case, the mean number of errors is 2,000,000 x 0.005% = 100. Since this is the variance as well, the standard deviation is 100 = 10. Therefore the range of outcomes within 2 standard deviations of the mean is 100 +/- (2*10) = 80 to 120 errors in a day.
Question: 91
Which of the following is the best description of the spread premium puzzle:
1. The spread premium puzzle refers to observed default rates being much less than implied default rates, leading to lower credit bonds being relatively cheap when compared to their actual default probabilities
2. The spread premium puzzle refers to dollar denominated non-US sovereign bonds being priced a at significant discount to other similar USD denominated assets
3. The spread premium puzzle refers to AAA corporate bonds being priced at almost the same prices as equivalent treasury bonds without offering the same liquidity or guarantee as treasury bonds
4. The spread premium puzzle refers to the moral hazard implicit in the monoline insurance market
Answer: A Explanation:
Choice �a� is the correct answer. The other choices represent non-sensical statements.
Question: 92
Loss provisioning is intended to cover:
1. Unexpected losses
2. Losses in excessof unexpected losses
3. Both expected and unexpected losses
4. Expected losses
Answer: D Explanation:
Loss provisioning is intended to cover expected losses. Economic capital is expected to cover unexpected losses. No capital or provisions are set aside for losses in excess of unexpected losses, which will ultimately be borne by equity. Choice �d� is the correct answer.
Question: 93
Which of the following credit risk models relies upon theanalysis of credit rating migrations to assess credit risk?
1. KMV�s EDF based approach
2. The CreditMetrics approach
3. The actuarial approach
4. The contingent claims approach
Answer: B Explanation:
The correct answer is Choice �b�. The following is a brief description of the major approaches available to model credit risk, and the analysis that underlies them:
Question: 94
Under the standardized approach to calculating operational risk capital under Basel II, negative regulatory capital charges for any of the business units:
1. Should be ignored completely
2. Should be offset against positive capital charges from other business units
3. Should be included after ignoring the negative sign
4. Should be excluded from capital calculations
Answer: B Explanation:
According to Basel II, in any given year, negative capital charges (resulting from negative gross income) in any business line may offset positive capital charges in other business lines without limit. Therefore Choice �b� is the correct answer.
Question: 95
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. 88.53%
C. 12.00%
D. 88.00%
Answer: B Explanation:
The probability that the security would not default in the next 4 years is equal to the probability of survival raised to the power four. In other words, =(1 -3%)^4 = 88.53%.
Choice �b� is the correct answer.
Question: 96
There are two bonds in a portfolio, each with a market value of $50m. The probability of default of the two bonds are
0.03 and 0.08 respectively, over a one year horizon.
If the probability of the two bonds defaulting simultaneously is 1.4%, what is the default correlation between the two?
1. 0%
2. 100%
3. 40%
4. 25%
Answer: D Explanation:
Probability of the joint default of both A and B =
We know all the numbers except default correlation, and we can solve for it. DefaultCorrelation*SQRT(0.03*(1 � 0.03)*0.08*(1 � 0.08)) + 0.03*0.08 = 0.014. Solving, we get default correlation = 25%
Question: 97
A bullet bond and an amortizing loan are issued at the same time with the same maturity and with the same principal . Which of these would have a greater credit exposure halfway through their life?
1. Indeterminate with the given information
2. They would have identical exposure half way through their lives
3. The amortizing loan
4. The bullet bond
Answer: D Explanation:
A bullet bond is a bond that pays coupons covering interest during the life of the bond and the principal at maturity. An amortizing loan pays the interest as well as a part of the principal with every payment. Therefore, the exposure of the amortizing loan continually reduces, and approaches zero towards the end of its life. The bullet bond will always have a higher exposure at any time during its life when compared to an equivalent amortizing loan. Hence Choice �d� is the correct answer.
Question: 98
Which of the following belong to the family of generalized extreme value distributions:
1. Frechet
2. Gumbel
3. Weibull
4. Exponential
1. IV
2. I, II and III
3. II and III
4. All of the above
Answer: B Explanation:
Extreme value theory focuses on the extreme and rare events, and in the case of VaR calculations, it is focused on the right tail of the lossdistribution.
In very simple and non-technical terms, EVT says the following:
Question: 99
In estimating credit exposure for a line of credit, it is usual to consider:
1. a fixed fraction of the line of credit to be the exposure at default even though the currently drawn amount is quite different from such a fraction.
2. the full value of the credit line to be the exposure at default as the borrower has an informational advantage that will lead them to borrow fully against the credit line at the time of default.
3. only the value of credit exposure currently existing against the credit line as the exposure at default.
4. the present value of the line of credit at the agreed rate of lending.
Answer: A Explanation:
Choice�a� is the correct answer. Exposures such as those to a line of credit of which only a part (or none) may be drawn at the time of assessment present a difficulty when attempting to quantify credit risk. It is not correct to take the entire amount of the line as the exposure at default, and likewise the current exposure is likely to be too aggressively low a number to consider.
While the borrower has an information advantage in that he would be aware of the deterioration in credit standing before the bank and would probably draw cash prior to default, it is unlikely that the entire amount of the line of credit would be drawn in all cases. In some cases, none may be drawn. In other cases, the bank would become aware of the situation and curtail or cancel access to the credit line in a timely fashion.
Therefore a fixed proportion of existing credit lines is considered a reasonable approximation of the exposure at default against credit lines.
Question: 100
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?
1. Insurance income
2. Operating expenses
3. Fees paid to outsourcing service proviers
4. Net non-interest income
Answer: D Explanation:
Gross income is defined by Basel II (see para 650 of the Basel standard) as net interest income plus netnon-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 notto 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.
Question: 101
According to the Basel II framework, subordinated term debt that was originally issued 4 years ago with amaturity of 6 years is considered a part of:
1. Tier 2 capital
2. Tier 1 capital
3. Tier 3 capital
4. None of the above
Answer: A Explanation:
According to the Basel II framework, Tier 1 capital, also called core capital or basic equity, includes equity capital and disclosed reserves.
Tier 2 capital, also called supplementary capital, includes undisclosed reserves, revaluation reserves, general provisions/general loan-loss reserves, hybrid debt capital instruments and subordinated term debt issued originally for 5 years or longer.
Tier 3 capital, or short term subordinated debt, is intended only to cover market risk but only at the discretion of their national authority. This only includes short term subordinated debt originally issued for 2 or more years.
An interesting thing to note is the difference between �subordinated term debt� under Tier 2 and the �short term subordinated debt� under Tier 3. The distinction is based upon the years to maturity at the time the debt was issued. The remaining time to maturity is not relevant.
For the subordinated term debt included under Tier 2, the amount that can be counted towards capital is reduced by 20% for every year when the debt is due within 5 years. This takes care of the time to maturity problem for Tier
2subordinated debt. For Tier 3 short term subordinated debt, this is not an issue because debt will only qualify for Tier 3 if it has a lock-in clause stipulating that the debt is not required to be repaid if the effect of such repayment is to take the bank below minimum capital requirements.

Killexams VCE exam Simulator 3.0.9

Download Killexams-Exam-Simulator-3.0.9.rar

Killexams has introduced Online Test Engine (OTE) that supports iPhone, iPad, Android, Windows and Mac. 8010 Online Testing system will helps you to study and practice using any device. Our OTE provide all features to help you memorize and practice questions Questions Answers while you are travelling or visiting somewhere. It is best to Practice 8010 exam Questions so that you can answer all the questions asked in test center. Our Test Engine uses Questions and Answers from actual Operational Risk Manager (ORM) exam.

Killexams Online Test Engine Test Screen

Killexams Online Test Engine Progress Chart

Killexams Online Test Engine Test History Graph

Killexams Online Test Engine Performance History

Killexams Online Test Engine Result Details

Online Test Engine maintains performance records, performance graphs, explanations and references (if provided). Automated test preparation makes much easy to cover complete pool of questions in fastest way possible. 8010 Test Engine is updated on daily basis.

Real Questions and Question Bank for 8010 exam

Many candidates who fall short on the Operational Risk Manager (ORM) exam hesitate to retake it. We encourage you to explore our premium 8010 practice questions questions and solutions, complete with a VCE practice test, to confidently try again. With our resources, you are positioned to achieve top marks in the 8010 exam. We guarantee success with our continuously updated, valid, and cutting-edge 8010 Exam Questions Practice Tests. Visit killexams.com to access these tools and elevate your preparation for assured results.

Latest 2025 Updated 8010 Real exam Questions

If your goal is to excel in the PRMIA 8010 exam and unlock lucrative career opportunities, register at killexams.com today. Our dedicated team of experts diligently gathers authentic 8010 practice questions questions to guarantee your success. Access the latest 8010 practice questions materials at no cost, backed by a 100% money-back guarantee. While many providers offer 8010 TestPrep, finding valid, legitimate, and current 8010 TestPrep is a significant challenge. Save time and resources by avoiding unreliable free 8010 TestPrep found online and choose killexams.com for proven results. Numerous providers offer practice exam online, but most deliver outdated 8010 TestPrep. Identifying a dependable and reputable 8010 TestPrep source requires careful research. Killexams.com stands out as a trusted provider, offering 100% free 8010 TestPrep for evaluation. Register to obtain the most recent, valid, and legitimate 8010 TestPrep, complete with real exam questions and answers. Benefit from exclusive discount coupons and utilize our 8010 VCE exam simulator to enhance your preparation. Avoid relying solely on 8010 textbooks or questionable free TestPrep online; trust killexams.com to support your 8010 exam success.

Killexams Review | Reputation | Testimonials | Customer Feedback

I am grateful to the killexams.com team for their remarkable exam questions materials, which helped me pass my 8010 exam yesterday. Their outstanding resources made preparation seamless, and I am confident in using their products for future exams.
Shahid nazir [2025-5-18]

I can confidently say that Killexams provides the best 8010 exam training I have ever come across. I passed the exam without any pressure, issues, or frustration, thanks to their valid questions. Their money-back guarantee also works, but it was not necessary as their material made it easy to pass. I plan to use Killexams for my future certification tests.
Martin Hoax [2025-4-23]

When I lost my 8010 syllabus just a week before the exam, I panicked, but killexams.com comprehensive resources made preparation manageable. Their well-organized materials simplified the process, and I passed with a strong score. I am deeply grateful for their support.
Martha nods [2025-6-19]

More 8010 testimonials...

8010 Exam

Question: I failed the exam but do not receive my refund, why?
Answer: There are several reasons for this issue. There are some guidelines provided for refund validity at https://killexams.com/pass-guarantee that might help you in this issue.

Question: Is killexams 8010 exam guide dependable?
Answer: Yes, killexams guides contain up-to-date and valid 8010 practice test. These Questions Answers in the study guide will help you pass your exam with good marks.

Question: Which website provides latest syllabus?
Answer: Killexams.com provides the latest syllabus of exams. You can visit the exam page at killexams and get information about the latest syllabus, course contents, exam objectives, and exam Details. You can obtain the latest practice questions by registering for the full version of the exam.

Question: Is there a way to obtain latest 8010 practice test?
Answer: After registering at the killexams.com website, obtain the full 8010 exam version with a complete 8010 question bank. Memorize all the questions and practice with the exam simulator again and again. You will be ready for the actual 8010 test. All the 8010 Questions Answers are up to date with the latest 8010 syllabus and exam contents.

Question: What is validity of 8010 exam questions?
Answer: You can choose from 3 months, 6 months and 12 months obtain accounts. During this period you will be able to obtain your 8010 practice questions as much time as you can. All the updates during this time will be provided in your account.

References

Frequently Asked Questions about Killexams Practice Tests

How you deliver exam after purchase, Hard copy or soft copy?
Killexams do not send hard copies of 8010 exam practice questions. Killexams provide an online account to obtain a soft copy of 8010 exam practice questions in PDF format. This is because, In case of an update in the 8010 exam, your book will be invalidated, and will have to order a new 8010 book. But in the case of an online account, you just need to re-download the exam brainpractice questions. You can make your book with the PDF document by printing it on your printer. This will also very cheap. You need not pay for delivery charges. You can also read 8010 practice questions on your mobile or other devices.

Is there a way to obtain 8010 Practice Tests?
Yes, you can obtain 8010 sample questions to evaluate the full version of the product. When you go through the product and find it useful for your 8010 exam, Go to the killexams.com website, register, and obtain the full 8010 exam version with a complete 8010 question bank. Memorize all the questions and practice with the exam simulator again and again. You will be ready for the actual 8010 test.

Do I need cheatsheet of 8010 exam to pass the exam?
Yes, It makes it a lot easier to pass 8010 exam with killexams cheatsheets. You need the latest 8010 question bank of the new syllabus to pass the 8010 exam. These latest 8010 brainpractice questions are taken from real 8010 exam question bank, that\'s why these 8010 exam questions are sufficient to read and pass the exam. Although you can use other sources also for improvement of knowledge like textbooks and other aid material these 8010 practice questions are sufficient to pass the exam.

Is Killexams.com Legit?

Indeed, Killexams is totally legit along with fully dependable. There are several benefits that makes killexams.com genuine and authentic. It provides knowledgeable and practically valid quiz test that contains real exams questions and answers. Price is small as compared to almost all the services on internet. The Questions Answers are modified on regular basis with most accurate brain dumps. Killexams account make and merchandise delivery is very fast. Record downloading can be unlimited and incredibly fast. Support is available via Livechat and Message. These are the features that makes killexams.com a sturdy website that supply quiz test with real exams questions.

Other Sources

Which is the best testprep site of 2025?

Discover the ultimate exam preparation solution with Killexams.com, the leading provider of premium practice questions questions designed to help you ace your exam on the first try! Unlike other platforms offering outdated or resold content, Killexams.com delivers reliable, up-to-date, and expertly validated exam Questions Answers that mirror the real test. Our comprehensive question bank is meticulously updated daily to ensure you study the latest course material, boosting both your confidence and knowledge. Get started instantly by downloading PDF exam questions from Killexams.com and prepare efficiently with content trusted by certified professionals. For an enhanced experience, register for our Premium Version and gain instant access to your account with a username and password delivered to your email within 5-10 minutes. Enjoy unlimited access to updated Questions Answers through your obtain Account. Elevate your prep with our VCE practice questions Software, which simulates real exam conditions, tracks your progress, and helps you achieve 100% readiness. Sign up today at Killexams.com, take unlimited practice tests, and step confidently into your exam success!

100% Money Back Pass Guarantee

Back to List

Social Profiles

Operational Risk Manager (ORM) Practice Test

8010 exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

100% Money Back Pass Guarantee

8010 PDF sample Questions

8010 sample Questions

Killexams VCE exam Simulator 3.0.9

Real Questions and Question Bank for 8010 exam

Latest 2025 Updated 8010 Real exam Questions

Tags

Killexams Review | Reputation | Testimonials | Customer Feedback

8010 Exam

References

Frequently Asked Questions about Killexams Practice Tests

Is Killexams.com Legit?

Other Sources

Which is the best testprep site of 2025?

Important Links for best testprep material

100% Money Back Pass Guarantee

Social Profiles