8011 Exam Success | 8011 Latest Exam Cram

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As one of the hot exam of our website, PRMIA dumps pdf has a high pass rate which reach to 85%. According to our customer's feedback, our 8011 vce braindumps covers mostly the same topics as included in the real exam. So if you practice our 8011 Test Questions seriously and review test answers, pass exam will be absolute.

The PRMIA 8011 exam is conducted in a computer-based format, and participants are given four hours to complete it. 8011 exam consists of 100 multiple-choice questions, and the passing score is set at 60%. 8011 exam is available in English and is administered globally at designated testing centers.

PRMIA 8011 CCRM Certificate exam covers a wide range of topics related to credit and counterparty risk management. These topics include the assessment of credit risk, understanding counterparty risk, and the identification and management of key risk factors. Candidates who pass the exam must demonstrate a deep understanding of credit analysis, financial statement analysis, credit event analysis, and the pricing and hedging of credit derivatives.

PRMIA 8011 Certification Exam is open to all professionals who meet the eligibility requirements, including risk managers, credit analysts, traders, bankers, regulators, and consultants. Candidates are required to have a minimum of three years of relevant work experience or a related degree in finance, economics, accounting, or business.

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PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q248-Q253):

NEW QUESTION # 248
Concentration risk in a credit portfolio arises due to:

A. Independence of individual default losses for the assets in the portfolio
B. Issuers of the securities in the portfolio being located in the same country
C. A high degree of correlation between the default probabilities of the credit securities in the portfolio
D. A low degree of correlation between the default probabilities of the credit securities in the portfolio

Answer: B

Explanation:
Concentration risk in a credit portfolio arises due to a high degree of correlation between the default probabilities of the issuers of securities in the portfolio. For example, the fortunes of the issuers in the same industry may be highly correlated, and an investor exposed to multiple such borrowers may face
'concentration risk'.
A low degree of correlation, or independence of individual defaults in the portfolio actually reduces or even eliminates concentration risk.
The fact that issuers are from the same country may not necessarily give rise to concentration risk - for example, a bank with all US based borrowers in different industries or with different retail exposure types may not face practically any concentration risk. What really matters is the default correlations between the borrowers, for example a lender exposed to cement producers across the globe may face a high degree of concentration risk.

NEW QUESTION # 249
If A and B be two debt securities, which of the following is true?

A. The probability of simultaneous default of A and B is greatest when their default correlation is 0
B. The probability of simultaneous default of A and B is greatest when their default correlation is negative
C. The probability of simultaneous default of A and B is greatest when their default correlation is +1
D. The probability of simultaneous default of A and B is not dependent upon their default correlations, but on their marginal probabilities of default

Answer: C

Explanation:
If the marginal probability of default of two securities A and B is P(A) and P(B), then the probability of both of them defaulting together is affected by the default correlation between them. Marginal probability of default means the probability of default of each security on a standalone basis, ie, the probability of default of one security without considering the other security.
The relationship that expresses the probability of joint default of the two is given by the following expression:
A black line with letters and numbers Description automatically generated

It is easy to see that in a situation where the Default Correlation of A & B = 0, ie, the defaults are independent, the combined probability of default is P(A)*P(B), exactly what we would intuitively expect.
Also in the other extreme case where the default correlation is equal to 1 and P(A) = P(B) = p, ie the securities behave in an identical way, the expression resolves to just p, which is what we would expect.
From the above relationship, it is clear that the probability of joint default of A and B is the greatest when default correlation between the two is equal to 1, ie the securities behave in an identical way. Therefore Choice 'a' is the correct answer.

NEW QUESTION # 250
Which of the formulae below describes incremental VaR where a new position 'm' is added to the portfolio?
(where p is the portfolio, and V_i is the value of the i-th asset in the portfolio. All other notation and symbols have their usual meaning.)

Answer: D

Explanation:
Incremental VaR is the change in portfolio VaR resulting from a change in a single position. This is accurately described by VaR_(p+a) - VaR_p. The other answers are incorrect, and describe other concepts.
It is important to know and understand the ideas behind MVaR (marginal VaR), CVaR (component VaR) and iVaR (incremental VaR), and the differences between them.

NEW QUESTION # 251
Which of the following is not a permitted approach under Basel II for calculating operational riskcapital

A. the standardized approach
B. the advanced measurement approach
C. the internal measurement approach
D. the basic indicator approach

Answer: C

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.

NEW QUESTION # 252
Which of the following risks and reasons justify the use of scenario analysis in operational risk modeling:
I). Risks for which no internal loss data is available
II). Risks that are foreseeable but have no precedent, internally or externally
III). Risks for which objective assessments can be made by experts
IV). Risks that are known to exist, but for which no reliable external or internal losses can be analyzed
V). Reducing the complexity of having to fit statistical models to internal and external loss data
VI). Managing the capital estimation process as to produce estimates in line with management's desired capital buffers.

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

Answer: B

Explanation:
All the reasons and risks presented above are valid reasons for using scenario analysis, except V and VI - ie, the need to reduce the complexity of calculations is not a valid reason for using scenarioanalysis. Similarly, making operational risk capital estimates match management's desired capital allocation targets is also not a valid reason. Capital calculations are intended to provide adequate capital for managing the risk from operations, regardless of what management may desire them to be.

NEW QUESTION # 253
......

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PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q248-Q253):

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