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PRMIA 8011 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Classic Credit Products, Life Cycle and Credit Risk Methodology | 30% | - Classic Credit Risk Methodology - Introduction to Credit Risk - Classic Credit Products |
| Topic 2: Case Studies | 7% | |
| Topic 3: Credit Risk Modeling and Portfolio Management | 20% | - Modern Credit Risk Modeling - Credit Portfolio Management |
| Topic 4: Counterparty Risk and Risk Mitigation | 13% | - Basics of Counterparty Risk - Risk Mitigation Techniques |
| Topic 5: Credit Derivatives and Securitization | 13% | - Securitization Processes and Instruments - Credit Derivatives |
| Topic 6: Credit Valuation Adjustment (CVA) and Related Topics | 17% | - XVA and SA-CCR - Credit Valuation Adjustment (CVA) - Managing Counterparty Risk and CVA |
PRMIA Credit and Counterparty Manager (CCRM) Certificate Sample Questions:
1. The difference between true severity and the best approximation of the true severity is called:
A) Total error
B) Fitting error
C) Approximation error
D) Estimation error
2. When considering a request for a loan from a retail customer, which of the following factors is relevant for a bank to consider:
A) All of the above
B) The credit worthiness of the retail customer
C) The contribution this new loan would bring to total portfolio risk
D) The other retail loans in its portfolio
3. Which of the following is true in relation to a Contingency Funding Plan (CFP)?
I. A CFP is like a disaster recovery plan to deal with a liquidity crisis II. A CFP should consider market stress conditions, but failures of payment systems are not relevant as they fall under the remit of operational risk III. Reputational damage may result if the market finds out that a firm has had to execute its CFP IV. Sources of emergency funding considered in the CFP should include the role of the central bank as the lender of last resort
A) IV
B) I and III
C) I, II and III
D) II and IV
4. Which of the following risks were not covered in detail in most stress tests prior to the current crisis:
I. The behavior of complex structured products under stressed liquidity conditions II. Pipeline or securitization risk III. Basis risk in relation to hedging strategies IV. Counterparty credit risk
V. Contingent risks
VI. Funding liquidity risk
A) I, II, III, IV and VI
B) All of the above
C) I, IV and VI
D) II, III and V
5. Which of the following statements is true
I). If no loss data is available, good quality scenarios can be used to model operational risk
II). Scenario data can be mixed with observed loss data for modeling severity and frequency estimates
III). Severity estimates should not be created by fitting models to scenario generated loss data points alone
IV). Scenario assessments should only be used as modifiers to ILD or ELD severity models.
A) I
B) I and II
C) III and IV
D) All statements are true
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |







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