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2025 100% Free 8020–100% Free Downloadable PDF | 8020 Questions

You can use this format of ORM Certificate - 2023 Update (8020) actual questions on your smart devices. In addition to the ORM Certificate - 2023 Update (8020) PDF dumps, we also offer ORM Certificate - 2023 Update (8020) practice exam software. You will find the same ambiance and atmosphere when you attempt the real PRMIA 8020 exam.

PRMIA 8020 Exam Syllabus Topics:

Topic
Details

Topic 1

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 2

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.

Topic 3

Risk Management Framework: This section of the exam measures the skills of Risk Managers and covers the development and implementation of structured approaches for risk identification, evaluation, and mitigation. It includes industry-standard frameworks that guide risk strategy and decision-making. A key skill measured is establishing a risk management framework for organizations.

Topic 4

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 5

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 6

Risk Governance: This section of the exam measures the skills of Compliance Officers and covers the policies, structures, and processes that define how organizations oversee risk. It explores regulatory compliance, ethical considerations, and corporate governance frameworks to ensure accountability. A key skill measured is applying governance frameworks to organizational risk policies.

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Free PDF 2025 PRMIA Perfect 8020: ORM Certificate - 2023 Update Downloadable PDF

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PRMIA ORM Certificate - 2023 Update Sample Questions (Q57-Q62):

NEW QUESTION # 57
For which of the following reasons did the Turnbull Report have a significant impact on risk governance?

A. It was a report that led to the establishment of the US Federal Reserve.
B. It defined the concept of risk governance for the insurance industry.
C. It was the first report to list the board as a proposed governance structure.
D. It was the first report to require a board to take specific account of risks and control systems for risks.

Answer: D

Explanation:
Step 1: What Is the Turnbull Report?
The Turnbull Report (1999) was a UK corporate governance report that set risk management expectations for boards.
It required companies to assess and manage risks effectively as part of corporate governance.
Step 2: Why Option C is Correct
Turnbull was the first report to mandate that boards must consider risk management in corporate governance.
This report established risk assessment as a board-level responsibility.
Step 3: Why the Other Options Are Incorrect
Option A ("Defined risk governance for insurance") → Incorrect because Turnbull applied to all sectors, not just insurance.
Option B ("First report to propose board structure") → Incorrect because corporate boards existed long before Turnbull.
Option D ("Led to the US Federal Reserve") → Incorrect because the Federal Reserve was established in 1913, long before Turnbull.
PRMIA Risk Reference Used:
PRMIA Corporate Governance Guidelines - Highlights Turnbull's role in board-level risk oversight.
UK Corporate Governance Code - Turnbull contributed to defining board risk responsibilities.
Final Conclusion:
The Turnbull Report was the first to require boards to consider risks in corporate governance, making Option C the correct answer.

NEW QUESTION # 58
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 and other complex structured transactions aided in the smoothing of profits and losses.
B. Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.
C. Complex structured transactions aided in the smoothing of losses.
D. Deep-in-the-money options aided in the smoothing of losses.

Answer: A

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 # 59
In operational resilience, what is impact tolerance?

A. Impact tolerance is a firm's risk appetite statement.
B. Impact tolerance is a firm's risk capacity statement.
C. Impact tolerance is a firm's tolerance for disruption to a particular business service.
D. Impact tolerance is a firm's tolerance for disruption to a particular business process.

Answer: C

NEW QUESTION # 60
Under the previous Basel II approach, which was not an approach for operational risk?

A. Alternative Measurement Approach (AMA).
B. The Standardized Approach (TSA).
C. Basic Indicator Approach (BIA).
D. Advanced Measurement Approach (AMA).

Answer: A

Explanation:
Overview of Basel II Approaches for Operational Risk
Basel II introduced three main approaches to calculating capital requirements for operational risk:
Basic Indicator Approach (BIA)
The Standardized Approach (TSA)
Advanced Measurement Approach (AMA)
Why Answer D is Correct
Alternative Measurement Approach (AMA) is not a recognized Basel II approach.
The correct term under Basel II was Advanced Measurement Approach (AMA).
Why Other Answers Are Incorrect
Option
Explanation:
A . Basic Indicator Approach (BIA).
Correct - A simple approach where capital is set as a fixed percentage of gross income.
B . The Standardized Approach (TSA).
Correct - Categorizes operational risk into business lines, each with assigned risk factors.
C . Advanced Measurement Approach (AMA).
Correct - Uses internal models to calculate capital requirements based on loss data, scenario analysis, and risk controls.
PRMIA Reference for Verification
Basel II Framework for Operational Risk (2004)
PRMIA Risk Management Guidelines

NEW QUESTION # 61
Which of the following is not an action available to management and the governing body to align the strategy with Risk Capacity.

A. Improve quality of risks - pursue lower rewarding risks with better prospects.
B. Improve retained earnings - by increasing net income or reducing dividends in order to increase risk capacity.
C. Reduce retained earning - by increasing dividends in order to return funds to investors and improve reputation.
D. Reduce scale of risks - shrink balance sheet or activity levels.

Answer: C

Explanation:
Step 1: Aligning Strategy with Risk Capacity
Risk capacity is the maximum level of risk a firm can bear based on financial resources, earnings, and capital structure.
Management can adjust risk capacity by modifying risk exposure, balance sheet size, or earnings retention.
Step 2: Why Option C Is Incorrect
Increasing dividends reduces retained earnings, which lowers capital reserves and reduces risk capacity.
Firms seeking to improve risk capacity should retain earnings, not distribute them.
Step 3: Why the Other Options Are Correct
Option A ("Reduce scale of risks") → Correct as reducing balance sheet size lowers risk exposure.
Option B ("Improve quality of risks") → Correct as taking on lower-risk assets improves stability.
Option D ("Improve retained earnings") → Correct as more capital increases risk capacity.
PRMIA Risk Reference Used:
PRMIA Capital Management Framework - Defines risk capacity and earnings retention strategies.
Basel III Capital Standards - Stresses retained earnings as a key factor in risk capacity.
Final Conclusion:
Reducing retained earnings through dividends weakens risk capacity, making Option C the correct answer.

NEW QUESTION # 62
......

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Carl King Carl King

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