PRMIA 8020 Actual Free Exam Questions & Community Discussion

Exam Code/Number: 8020
Exam Name/Title: ORM Certificate - 2023 Update
Certification Provider: PRMIA
Corresponding Certification: PRM Certification

Exam Questions: 62
Updated On: Jul 21, 2026

Question #1

Confidence Accounting can be defined as:

A. An approach that encourages companies and audit firms to have diverse boards.

B. An approach that encourages companies and audit firms to stop using figures and maths.

C. An approach that encourages companies and audit firms to use regular statements in their Al software.

D. An approach that encourages companies and audit firms to use ranges, rather than discrete numbers, for major accounting entries.

Discussion 0

Correct Answer: D Vote an answer

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Question #2

The Internal Loss Multiplier (ILM) is part of the Basel III Standardized Approach. Which of these definitions best descibes it?

A. It is a financial-statement-based proxy for operational risk.

B. It is a non-financial factor that is based on a bank's average historical losses.

C. t is a scaling factor that is based on a bank's average historical losses.

D. It is uniform, and is used for indicating consistent incidents on an average return basis.

Discussion 0

Correct Answer: C Vote an answer

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Question #3

For the Northern Rock case study, what was the low-probability-high-impact event that was most responsible for the loss event?

A. An exposure to real estate funds, heavily concentrated in Berlin.

B. The acquisition of Merrill Lynch by Bank of America.

C. The Bank of England's withdrawal of Deposit Protection.

D. Liquidity dried up in the inter-bank and commercial paper markets.

Discussion 0

Correct Answer: D Vote an answer

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Question #4

For the National Australia Bank - FX Options case study, which was the major cause of the loss event?

A. Currency traders concealed losses using back office knowledge.

B. Currency traders smoothed profits and concealed losses.

C. Currency traders were able to complete a Management Buy Out (MBO).

D. Currency traders were allowed access to the risk system by the CEO.

Discussion 0

Correct Answer: B Vote an answer

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Question #5

Which of the following statements is best for inclusion in the values to be set for a Risk Function?

A. We prize the ability to ensure that the Risk Function's opinions are listened to and acted upon.

B. We prize the ability to implement the board's direction on the implementation of controls for risks.

C. We prize the ability to lower risk-taking to an absolute minimum - zero if possible.

D. We prize the ability to implement the management team's direction on the control of risks.

Discussion 0

Correct Answer: B Vote an answer

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Question #6

In operational resilience, what is impact tolerance?

A. Impact tolerance is a firm's tolerance for disruption to a particular business service.

B. Impact tolerance is a firm's risk appetite statement.

C. Impact tolerance is a firm's risk capacity statement.

D. Impact tolerance is a firm's tolerance for disruption to a particular business process.

Discussion 0

Correct Answer: A Vote an answer

Question #7

For the Barings case study, segregation of duties was an issue. How did this present itself in this case?

A. A trader was responsible for managing the back-office.

B. A trader was responsible for managing the front-office.

C. A trader was responsible for managing the expense account.

D. A risk manager was responsible for managing the back-office

Discussion 0

Correct Answer: A Vote an answer

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