Guaranteed 8020 Passing, 8020 Online Version

Rated:

, 0 Comments

Total visits: 4

Posted on: 06/03/25

We are quite confident that all these PRMIA 8020 exam dumps feature you will not find anywhere. Just download the PRMIA 8020 and start this journey right now. For the well and quick 8020 exam dumps preparation, you can get help from PRMIA 8020 which will provide you with everything that you need to learn, prepare and pass the ORM Certificate - 2023 Update (8020) certification exam.

PRMIA 8020 Exam Syllabus Topics:

Topic	Details
Topic 1	Insurance Mitigation: This section of the exam measures the skills of Insurance Risk Managers and covers strategies for transferring risk through insurance and other financial instruments. It focuses on risk transfer mechanisms, policy structuring, and claims management. A key skill measured is assessing risk transfer options through insurance.
Topic 2	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 3	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.
Topic 4	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.

>> Guaranteed 8020 Passing <<

8020 Online Version, 8020 Valid Dumps Free

I wonder if you noticed that there are three versions of our 8020 test questions—PDF, software on pc, and app online, which can bring you the greatest convenience. Imagine that if you feel tired or simply do not like to use electronic products to learn, the PDF version of 8020 Test Torrent is best for you. Just like reading, you can print it, annotate it, make your own notes, and read it at any time.

PRMIA ORM Certificate - 2023 Update Sample Questions (Q40-Q45):

NEW QUESTION # 40
What are the objectives of conducting an internal loss investigation?

A. This is determined on a case by case basis by the HR team.
B. Increase understanding of root causes, focus attention on who caused the issue, and improve the quality of scenario analysis and risk assessments.
C. Increase understanding of root causes, focus attention on remediation, and ascertain responsibility for the loss event.
D. Increase understanding of root causes, focus attention on remediation, and improve the quality of scenario analysis and risk assessments.

Answer: D

Explanation:
tep 1: Purpose of Internal Loss Investigations
Internal loss investigations analyze past loss events to identify root causes, improve controls, and enhance risk assessments.
Step 2: Why Option A Is Correct
Root Cause Analysis: Identifying why the loss occurred.
Focus on Remediation: Implementing corrective measures to prevent recurrence.
Scenario Analysis Improvement: Using lessons learned to enhance risk scenario modeling.
Step 3: Why the Other Options Are Incorrect
Option B ("Focus on who caused the issue") → Incorrect because loss investigations are about systemic issues, not assigning blame.
Option C ("Ascertain responsibility for the loss event") → Incorrect because the focus is on process improvements, not individual accountability.
Option D ("Determined by HR on a case-by-case basis") → Incorrect because HR does not dictate risk investigations-risk and compliance functions do.
PRMIA Risk Reference Used:
PRMIA Operational Risk Framework - Emphasizes loss investigations for systemic risk management.
Basel III Risk Governance Standards - Defines loss event analysis as a key risk management tool.

NEW QUESTION # 41
Two of the four key resources that are regarded as critical to maintain confidence and calibrate Risk Appetite to are?

A. Quality human resources and reputation.
B. Capital expenditure and liquidity.
C. Net earnings and capital.
D. Strong regulatory assessment and net earnings.

Answer: C

Explanation:
Key Resources for Calibrating Risk Appetite
Risk appetite defines how much risk an organization is willing to accept to achieve its objectives.
Two of the most critical resources for maintaining confidence and setting risk appetite are net earnings and capital.
Why Net Earnings and Capital are Critical
Net earnings reflect profitability and financial stability, influencing risk-taking capacity.
Capital ensures that the institution can absorb losses and meet regulatory requirements.
Basel III emphasizes capital adequacy as a core measure of financial resilience.
Why Answer B is Correct
Net earnings support operational stability, while capital determines how much risk an institution can bear.
Both are used to define and calibrate risk appetite levels.
Why Other Answers Are Incorrect
Option
Explanation:
A . Capital expenditure and liquidity.
Incorrect - Capital expenditure is an investment measure, not a direct risk appetite determinant.
C . Strong regulatory assessment and net earnings.
Incorrect - Regulatory assessments are important but do not directly set risk appetite.
D . Quality human resources and reputation.
Incorrect - HR and reputation are important for governance but do not directly influence risk capital and earnings stability.
PRMIA Reference for Verification
PRMIA Risk Appetite Framework
Basel III Capital and Earnings Management Guidelines

NEW QUESTION # 42
Which of the following principles best applies to a compliance function?

A. The risk function should be outsourced if there is a compliance function.
B. The compliance function should be outsourced if there is a risk function.
C. The compliance function should report to the business (even when following a three lines of defense model).
D. The compliance function should be independent of the business (following a three lines of defense model).

Answer: D

Explanation:
Step 1: Compliance Function and the Three Lines of Defense Model
The Three Lines of Defense (3LoD) model ensures that risk management responsibilities are properly segregated:
First Line: Business units (own and manage risk).
Second Line: Compliance and risk management (independent oversight).
Third Line: Internal audit (provides assurance).
Step 2: Why Compliance Must Be Independent
PRMIA and Basel Compliance Principles state that compliance should not report to business units, as this creates a conflict of interest.
Compliance must be independent to ensure objective oversight of regulatory adherence.
Step 3: Why the Other Options Are Incorrect
Option A ("Report to the business") → Incorrect because compliance must provide independent oversight, not report to business units.
Option C ("Outsource compliance if risk function exists") → Incorrect because compliance and risk functions have distinct roles.
Option D ("Outsource risk if compliance exists") → Incorrect because risk management is a core function, not an outsourcing candidate.
PRMIA Risk Reference Used:
PRMIA Compliance Risk Governance - States compliance must be independent under the Three Lines of Defense model.
Basel Compliance Principles - Recommends separate reporting structures for compliance and business units.
Final Conclusion:
Compliance must be independent from the business to avoid conflicts of interest, making Option B the correct answer.

NEW QUESTION # 43
Risk Sensitive pricing is required for several good reasons. Which one of the following is not relevant to the Management's evaluation of the correct approach to Risk Sensitive pricing?

A. To ensure the income targets can be met or exceeded.
B. To adequately reward the investors for the capital they gave us to put at risk.
C. To link personal targets to risk-adjusted return requirements would reinforce the desired risk aware, culture.
D. To avoid the build-up of a skewed quality property portfolio.

Answer: A

Explanation:
Risk-sensitive pricing ensures that financial institutions and businesses properly account for risk in their pricing strategies to maintain stability and sustainability. PRMIA's Risk Pricing and Capital Adequacy Guidelines define the importance of risk-sensitive pricing in ensuring fair compensation for risk exposure and avoiding risk concentration issues.
Step 1: Why Risk-Sensitive Pricing Is Important
Aligns risk with return: Pricing should be designed to reflect the underlying risk and return trade-off.
Protects investors: Investors expect compensation for capital at risk (Option A is correct).
Reinforces risk-aware culture: PRMIA promotes linking incentives to risk-adjusted returns (Option B is correct).
Prevents adverse selection: Proper risk pricing prevents low-quality assets from accumulating (Option C is correct).
Step 2: Why Option D Is Incorrect
Income targets are business-driven, not risk-driven.
Risk-sensitive pricing aims to balance risk and reward, not just maximize revenue.
PRMIA discourages profit-seeking behavior at the expense of risk considerations.
PRMIA Risk Reference Used:
PRMIA Risk Pricing Guidelines - Defines the principles of risk-sensitive pricing.
PRMIA Risk-Adjusted Return Standards - Stresses linking incentives to risk-aware decisions.
PRMIA Capital Adequacy Framework - Highlights the role of risk-sensitive pricing in portfolio management.
Final Conclusion:
Risk-sensitive pricing is designed to align returns with risk exposure, not simply to meet or exceed income targets, making Option D the correct answer.

NEW QUESTION # 44
For the FTX case study, what was the "backdoor" used for?

A. It allowed currency traders to smooth profits and conceal losses for over two years.
B. It allowed a rapid pace of acquisitions but poor integration of acquired companies.
C. It allowed a stable coin to be removed from the ledger and added to the balance sheet.
D. It allowed trading firm Alameda to borrow S65 billion of clients' money from the exchange without their permission.

Answer: D

Explanation:
The FTX collapse involved fraudulent fund mismanagement, where FTX executives created a "backdoor" to allow Alameda Research (FTX's sister trading firm) to borrow client funds without their consent.
Step 1: The "Backdoor" in FTX
The backdoor was a hidden code in FTX's system, allegedly created by Sam Bankman-Fried, which allowed Alameda to access customer deposits without triggering alerts to auditors or compliance teams.
Alameda used these funds for risky trading strategies and investments, leading to the eventual collapse of FTX when a liquidity crunch exposed the missing funds.
Step 2: Why the Other Options Are Incorrect
Option A ("allowed a stablecoin to be removed from the ledger and added to the balance sheet") Incorrect because FTX's fraud involved misuse of customer funds, not just a stablecoin misclassification.
Option C ("allowed currency traders to smooth profits and conceal losses for over two years") Incorrect because this sounds more like LIBOR-rigging scandals, whereas FTX misappropriated client funds.
Option D ("allowed a rapid pace of acquisitions but poor integration of acquired companies") Incorrect because FTX's collapse was due to financial fraud, not poor acquisition strategy.
PRMIA Risk Reference Used:
PRMIA Financial Crime Risk Management - Discusses insider risk and fraudulent misappropriation of funds.
FTX Collapse Reports - SEC, CFTC, and DOJ filings confirm that Alameda had unauthorized access to client funds.
Final Conclusion:
FTX's backdoor enabled Alameda to take $65 billion in client funds without permission, making Option B the correct answer.

NEW QUESTION # 45
......

For your satisfaction, TestValid provides you the facility of free 8020 brain dumps demo. You can easily download them from our website and examine their quality and usefulness. Compare them with 8020 brain dumps and others available with you. You will find these amazing 8020 test dumps highly compatible with your needs as well as quite in line with the Real 8020 Exam Questions. TestValid 8020 exam dumps promise you an outstanding exam success with an assurance of 100% money refund, if its dumps fail to help you pass the exam with flying colors.

8020 Online Version: https://www.testvalid.com/8020-exam-collection.html

Tags: Guaranteed 8020 Passing, 8020 Online Version, 8020 Valid Dumps Free, Examcollection 8020 Questions Answers, 8020 VCE Dumps

Comments

There are still no comments posted ...

Rate and post your comment

Username:
Password:
Forgotten password?

Most Popular

Guaranteed 8020 Passing, 8020 Online Version

PRMIA 8020 Exam Syllabus Topics:

8020 Online Version, 8020 Valid Dumps Free

PRMIA ORM Certificate - 2023 Update Sample Questions (Q40-Q45):

Login