PRMIA Operational Risk Manager (ORM) : 8010

Pass 8010 Exam Cram

Exam Code: 8010

Exam Name: Operational Risk Manager (ORM) Exam

Updated: Jul 12, 2026

Q & A: 242 Questions and Answers

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PRMIA Operational Risk Manager (ORM) Sample Questions:

1. Under the ISDA MA, which of the following terms best describes the netting applied upon the bankruptcy of a party?

A) Closeout netting
B) Payment netting
C) Chapter 11
D) Multilateral netting


2. When compared to a high severity low frequency risk, the operational risk capital requirement for a low severity high frequency risk is likely to be:

A) Lower
B) Unaffected by differences in frequency or severity
C) Zero
D) Higher


3. Which of the following is true in relation to the application of Extreme Value Theory when applied to operational risk measurement?
I. EVT focuses on extreme losses that are generally not covered by standard distribution assumptions II. EVT considers the distribution of losses in the tails III. The Peaks-over-thresholds (POT) and the generalized Pareto distributions are used to model extreme value distributions IV. EVT is concerned with average losses beyond a given level of confidence

A) I, II and IV
B) II and III
C) I and IV
D) I, II and III


4. A risk management function is best organized as:

A) integrated with the risk taking functions as risk management should be a pervasive activity carried out at all levels of theorganization.
B) reporting directly to the traders, as to be closest to the point at which risks are being taken
C) report independently of the risk taking functions
D) a part of the trading desks and other risk taking teams


5. The frequency distribution for operational risk loss events can be modeled by which of the following distributions:
I. The binomial distribution
II. The Poisson distribution
III. The negative binomial distribution
IV. The omega distribution

A) I, II and III
B) I and III
C) I, II, III and IV
D) I, III and IV


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: A

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