Get Excellent 8020 Practice Exam Pdf and Pass Exam in First Attempt
If you are preparing the exam, you will save a lot of troubles with the guidance of our 8020 training engine. Our company is aimed at relieving your pressure from heavy study load. So we strongly advise you to have a try on our 8020 Study Guide. If you want to know them before your purchase, you can free download the demos of our 8020 exam braindumps on the website, which are the small part of the learning questions.
A vast majority of aspiring candidates encounter problems finding relevant and reliable 8020 practice exam material that can be handy in preparing for the PRMIA 8020 Certification Exam. They face hardship seeking up-to-date and authentic PRMIA 8020 exam for the PRMIA 8020 exam preparation.
Pass Guaranteed Quiz 2025 PRMIA First-grade 8020: ORM Certificate - 2023 Update Practice Exam Pdf
The ORM Certificate - 2023 Update (8020) Desktop-based practice Exam is ideal for applicants who don't have access to the internet all the time. You can use this 8020 simulation software without an active internet connection. This 8020 software runs only on Windows computers. Both practice tests of Easy4Engine i.e. web-based and desktop are customizable, mimic PRMIA 8020 Real Exam scenarios, provide results instantly, and help to overcome mistakes.
PRMIA 8020 Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
Topic 4
PRMIA ORM Certificate - 2023 Update Sample Questions (Q50-Q55):
NEW QUESTION # 50
Which of the Basel Accords, published in 2004, introduced operational risk as a risk subjected to a capital charge?
Answer: A
Explanation:
Introduction of Operational Risk in Basel Accords
Basel I (1988) → Focused only on credit risk and market risk; operational risk was not yet included.
Basel II (2004) → Introduced operational risk as a separate category, subject to capital requirements.
Basel III (2010) → Strengthened capital and liquidity requirements but did not introduce operational risk.
Basel IV (2017, still evolving) → Adjusts Basel III reforms but does not introduce operational risk as a new category.
Why Answer B is Correct
Basel II (2004) was the first to introduce operational risk as a risk requiring a capital charge.
Why Other Answers Are Incorrect
Option
Explanation:
A . Basel I
Incorrect - Basel I focused on credit risk and market risk, with no capital requirements for operational risk.
C . Basel III
Incorrect - Basel III strengthened Basel II but did not introduce operational risk.
D . Basel IV
Incorrect - Basel IV refines Basel III but does not introduce operational risk as a new capital charge.
PRMIA Reference for Verification
Basel II (2004) Operational Risk Framework
PRMIA Operational Risk Management Guidelines
NEW QUESTION # 51
Which of the following is a correct statement about control rating scales?
Answer: C
Explanation:
Definition of Control Rating Scales
Control rating scales measure the effectiveness and performance of risk management controls.
They help organizations evaluate control strength and identify weaknesses.
Key Components
Control effectiveness → Measures how well the control mitigates risks.
Control performance → Assesses whether the control operates as designed in practice.
Why Answer C is Correct
Both effectiveness and performance are crucial for assessing control reliability.
A control may be designed effectively but fail in execution, making both factors essential.
Why Other Answers Are Incorrect
Option
Explanation:
A . They are enhanced by the use of software that includes inherent risk.
Incorrect - Software can improve ratings, but control scales are based on evaluation criteria, not just software tools.
B . A control rating scale should consider control effectiveness but not control performance.
Incorrect - Ignoring performance could lead to misjudging actual control reliability.
D . A control rating scale should consider neither control effectiveness nor control performance.
Incorrect - This would render the control rating scale useless.
PRMIA Reference for Verification
PRMIA Governance and Control Framework
Basel Operational Risk Management Guidelines
NEW QUESTION # 52
For the Barings case study, segregation of duties was an issue. How did this present itself in this case?
Answer: A
Explanation:
Background of the Barings Case Study
Nick Leeson, a trader at Barings Bank, caused the collapse of the institution due to unauthorized trading in derivatives.
A critical failure was the lack of segregation of duties, allowing Leeson to both execute trades (front-office) and oversee trade settlement (back-office).
How Segregation of Duties Failed
Proper segregation of duties ensures that no single individual has unchecked control over trading and settlement.
Leeson was responsible for both trading (front-office) and settlement (back-office), meaning he could hide losses without detection.
Why Answer A is Correct
A trader (Leeson) should never have been managing back-office functions.
His dual role allowed him to manipulate records and bypass controls, leading to $1.3 billion in losses and the bank's collapse.
Why Other Answers Are Incorrect
Option
Explanation:
B . A trader was responsible for managing the front-office.
Incorrect - Traders are supposed to manage the front-office; the issue was their involvement in back-office functions.
C . A risk manager was responsible for managing the back-office.
Incorrect - The issue was lack of oversight on the trader, not risk managers handling back-office duties.
D . A trader was responsible for managing the expense account.
Incorrect - The main issue was the trader's control over trade settlement, not expense accounts.
PRMIA Reference for Verification
PRMIA Case Study on Barings Bank Collapse
Basel Principles on Segregation of Duties in Risk Management
NEW QUESTION # 53
The DORA act's full name is which of the following?
Answer: A
Explanation:
Definition of DORA
The Digital Operational Resilience Act (DORA) is a regulation by the European Union (EU) aimed at strengthening the digital resilience of financial institutions.
It establishes a regulatory framework for managing information and communication technology (ICT) risks in the financial sector.
Key Objectives of DORA
Ensures that financial institutions can withstand, respond to, and recover from cyber threats and ICT-related disruptions.
Introduces standards for risk management, incident reporting, and third-party ICT risk oversight.
Why Other Answers Are Incorrect
Option
Explanation:
A . Domain for Operational Risk Act.
Incorrect - No such regulation exists under this name.
B . Digital Operational Risk Act.
Incorrect - The official name is Digital Operational Resilience Act (DORA).
C . Daily Operational Resilience Act.
Incorrect - DORA is not focused on daily operations but rather long-term digital resilience.
PRMIA Reference for Verification
PRMIA Risk Governance & Digital Resilience Standards
European Commission's Official DORA Regulation
NEW QUESTION # 54
An example of Credit Risk events with an Operational Risk component included?
Answer: C
Explanation:
Step 1: Understanding Credit Risk with an Operational Risk Component
Credit Risk: Risk of loss due to borrower default.
Operational Risk: Risk of loss due to failed internal processes, fraud, or misconduct.
Step 2: Why Option D is Correct
Ponzi Schemes: Fraudulent investment scams disguise credit risk as legitimate lending but collapse when new funds dry up.
Rogue Trading: Traders take unauthorized risks that can lead to credit defaults or massive financial losses.
Step 3: Why the Other Options Are Incorrect
Option A ("Failure in loan approval process") → This is an Operational Risk issue, but does not always create Credit Risk.
Option B ("Ponzi Schemes") → Partially correct, but does not include Rogue Trading, which is also a credit risk-related operational failure.
Option C ("Rogue Trading") → Partially correct, but does not include Ponzi Schemes, which are another key example.
PRMIA Risk Reference Used:
PRMIA Operational Risk Framework - Highlights fraud-based Credit Risk events.
Basel II/III Operational Risk Guidelines - Discusses trading misconduct and credit risk misrepresentation.
Final Conclusion:
Both Ponzi Schemes and Rogue Trading involve credit risk failures caused by operational misconduct, making Option D the correct answer.
NEW QUESTION # 55
......
The best way for candidates to know our ORM Certificate - 2023 Update 8020 training dumps is downloading our free demo. We provide free PDF demo for each exam. This free demo is a small part of the official complete PRMIA 8020 training dumps. The free demo can show you the quality of our exam materials. You can download any time before purchasing.
8020 New Braindumps: https://www.easy4engine.com/8020-test-engine.html
Our objective is to create a situation where students will find Physics interesting & the strongest subject helping them to achieve top ranks in competitive exams.
SCO 156, Level 2, Sector 37 C, Chandigarh
SCO 34, Level 2, Sector 20 C, Chandigarh
(+91) 987-266-2552, (0172) 466-2552
Copyright © 2021 KP Institute of Physics | Powered by RiAcube
Call 9872662552
