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PRMIA 8011 valid - in .pdf

8011 pdf
  • Exam Code: 8011
  • Exam Name: Credit and Counterparty Manager (CCRM) Certificate Exam
  • Q & A: 330 Questions and Answers
  • PDF Price: $59.99
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  • Exam Code: 8011
  • Exam Name: Credit and Counterparty Manager (CCRM) Certificate Exam
  • Q & A: 330 Questions and Answers
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PRMIA 8011 valid - Testing Engine

8011 Testing Engine
  • Exam Code: 8011
  • Exam Name: Credit and Counterparty Manager (CCRM) Certificate Exam
  • Q & A: 330 Questions and Answers
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PRMIA 8011 Exam Syllabus Topics:

SectionObjectives
Credit Derivatives and Securitization- Credit derivatives
  • 1. Credit default swaps
  • 2. Total return swaps
- Securitization structures
  • 1. Collateralized debt obligations
  • 2. Asset-backed securities
Counterparty Risk- Risk mitigation
  • 1. Collateral management
  • 2. Netting
- Counterparty exposure
  • 1. Potential future exposure
  • 2. Current exposure
Modern Credit Risk Modeling- Portfolio risk models
  • 1. Value at Risk models
  • 2. Stress testing
- PD/LGD modeling
  • 1. Probability of default
  • 2. Exposure at default
  • 3. Loss given default
Classic Credit Products and Lifecycle- Traditional credit products
  • 1. ESG and green lending products
  • 2. Corporate lending
  • 3. Retail lending
- Credit lifecycle management
  • 1. Workout and recovery
  • 2. Origination
  • 3. Monitoring
CVA and DVA- Credit valuation adjustment
  • 1. CVA measurement
  • 2. CVA interpretation
- Debit valuation adjustment
  • 1. Accounting treatment
  • 2. DVA calculation
Management of CVA and DVA- Operational implementation
  • 1. Regulatory considerations
  • 2. Pricing adjustments
- CVA management techniques
  • 1. Risk mitigation frameworks
  • 2. Hedging strategies
Classic Credit Risk Methodology- Traditional credit analysis
  • 1. Credit assessment frameworks
  • 2. Financial statement analysis
- Risk management practices
  • 1. Credit approval processes
  • 2. Risk rating systems
Credit Portfolio Management- Portfolio monitoring
  • 1. Diversification
  • 2. Concentration risk
- Risk-adjusted performance
  • 1. Economic capital
  • 2. RAROC
Standardized Approach for Counterparty Credit Risk- Regulatory capital treatment
  • 1. Basel framework application
  • 2. Exposure measurement
- SA-CCR framework
  • 1. Replacement cost
  • 2. Potential future exposure calculation

PRMIA Credit and Counterparty Manager (CCRM) Certificate Sample Questions:

Question #1

What is the risk horizon period used for credit risk as generally used for economic capital calculations and as required by regulation?

  • A. 10 days
  • B. 10 years
  • C. 1-day
  • D. 1 year
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Which of the following decisions need to be made as part of laying down a system for calculating VaR:
I. How returns are calculated, eg absoluted returns, log returns or relative/percentage returns II. Whether VaR is calculated based on historical simulation, Monte Carlo, or is computed parametrically III. Whether binary/digital options are included in the portfolio positions IV. How volatility is estimated

  • A. I and III
  • B. II and IV
  • C. All of the above
  • D. I, II and IV
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

Ex-ante VaR estimates may differ from realized P&L due to:
I. the effect of intra day trading
II. timing differences in the accounting systems
III. incorrect estimation of VaR parameters
IV. security returns exhibiting mean reversion

  • A. I and III
  • B. I, II and IV
  • C. I, II and III
  • D. II, III and IV
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

When estimating the risk of a portfolio of equities using the portfolio's beta, which of the following is NOT true:

  • A. use of the beta assumes that the portfolio is diversified enough so that the specific risks of the individual stocks offset each other
  • B. relies upon the single factor CAPM model
  • C. using the beta significantly eases the computational burden of calculating risk
  • D. explicitly considers specific risk inherent in the portfolio for risk calculations
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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