Free PRMIA 8020 Practice Test & Real Exam Questions

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

Exam Questions: 62
Updated On: Sep 12, 2026

Question #1

For the TSB case what was the cause of the outage at the heart of the case?

A. Their IT models did not work if prices were discontinuous.

B. A failed attempts to move customers to a new IT system left millions of people locked out of their accounts for weeks.

C. A liquidity squeeze by a major hedge-fund via margin calls on trading positions resulted in the collapse of their website.

D. Sub-standard risk pricing and risk management left millions of people locked out of their accounts for weeks.

Discussion 0

Correct Answer: B Vote an answer

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Question #2

Governance can be defined as which of the following?

A. Governance is a structure specifying the policies, principles, and procedures for making decisions about corporate direction.

B. Governance is a structure specifying the ways in which reporting is made to the primary regulator.

C. Governance is being replaced by management in all firms that are regulated.

D. Governance is a structure specifying the daily operation of a firm.

Discussion 0

Correct Answer: A Vote an answer

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Question #3

In the Basel III standardized approach for operational risk, what is the Business Indicator?

A. It is a proxy for operational risks that relate to near-miss events.

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

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

D. It is a scaling factor that is based on a bank's average historical losses.

Discussion 0

Correct Answer: C Vote an answer

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Question #4

What are the objectives of conducting an internal loss investigation?

A. Increase understanding of root causes, focus attention on remediation, and ascertain responsibility for the loss event.

B. Increase understanding of root causes, focus attention on remediation, and improve the quality of scenario analysis and risk assessments.

C. Increase understanding of root causes, focus attention on who caused the issue, and improve the quality of scenario analysis and risk assessments.

D. This is determined on a case by case basis by the HR team.

Discussion 0

Correct Answer: B Vote an answer

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Question #5

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. Strong regulatory assessment and net earnings.

C. Net earnings and capital.

D. Capital expenditure and liquidity.

Discussion 0

Correct Answer: C Vote an answer

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Question #6

How can a chief risk officer encourage the governing body and executive management team to create a stronger risk culture?

A. Discourage personal accountability to avoid a blame culture.

B. Balance rewarding success in profitability goals with punishment when there is a failure to achieve goals.

C. Establish a set of objectives that the board and executive team must adhere to.

D. Having a vision of achievable but not excessive ambition.

Discussion 0

Correct Answer: D Vote an answer

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Question #7

Risk Capacity for a bank is defined as the:

A. Ability to withstand an extreme event and make a profit.

B. Amount of risk the bank wishes to take.

C. Amount of risk the regulator sets for the bank.

D. Ability to suffer an extreme event with an orderly wind up with only shareholders losing money.

Discussion 0

Correct Answer: D Vote an answer

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