VALID PRMIA - 8020 - ORM CERTIFICATE - 2023 UPDATE EXAM QUESTIONS ANSWERS

Valid PRMIA - 8020 - ORM Certificate - 2023 Update Exam Questions Answers

Valid PRMIA - 8020 - ORM Certificate - 2023 Update Exam Questions Answers

Blog Article

Tags: 8020 Exam Questions Answers, Exam 8020 Material, Real 8020 Exam Questions, Reliable 8020 Exam Labs, Formal 8020 Test

After using our software, you will know that it is not too difficult to pass 8020 exam. You will find some exam techniques about how to pass 8020 exam from the exam materials and question-answer analysis provided by our TestPassKing. Besides, to make you be rest assured of our dumps, we provide 8020 Exam Demo for you to free download.

Our world is in the state of constant change and evolving. If you want to keep pace of the time and continually transform and challenge yourself you must attend one kind of 8020 certificate test to improve your practical ability and increase the quantity of your knowledge. Buying our 8020 Study Materials can help you pass the test smoothly. Our 8020 study materials have gone through strict analysis and verification by senior experts and are ready to supplement new resources at any time.

>> 8020 Exam Questions Answers <<

Exam PRMIA 8020 Material, Real 8020 Exam Questions

In the learning process, many people are blind and inefficient for without valid 8020 exam torrent and they often overlook some important knowledge points which may occupy a large proportion in the 8020 exam, and such a situation eventually lead them to fail the exam. While we can provide absolutely high quality guarantee for our 8020 practice materials, for all of our learning materials are finalized after being approved by industry experts. Without doubt, you will get what you expect to achieve, no matter your satisfied scores or according certification file

PRMIA ORM Certificate - 2023 Update Sample Questions (Q12-Q17):

NEW QUESTION # 12
For the Northern Rock case study, what was the low-probability-high-impact event that was most responsible for the loss event?

  • A. Liquidity dried up in the inter-bank and commercial paper markets.
  • B. The Bank of England's withdrawal of Deposit Protection.
  • C. The acquisition of Merrill Lynch by copyright.
  • D. An exposure to real estate funds, heavily concentrated in Berlin.

Answer: A

Explanation:
Step 1: Understanding the Northern Rock Case Study
Northern Rock was a UK bank that collapsed in 2007 due to its heavy reliance on short-term wholesale funding rather than customer deposits.
When the 2007 financial crisis hit, the inter-bank lending market and commercial paper market froze, cutting off Northern Rock's access to liquidity.
Step 2: Why Option C Is Correct
Northern Rock depended on short-term borrowing to fund long-term mortgage lending.
When the liquidity crisis hit, it couldn't refinance its debt, leading to a bank run and collapse.
The Bank of England had to intervene, and the UK government nationalized Northern Rock in 2008.
Step 3: Why the Other Options Are Incorrect
Option A ("Acquisition of Merrill Lynch") → Incorrect because this happened in 2008, after Northern Rock's failure.
Option B ("Withdrawal of Deposit Protection") → Incorrect because UK deposit protection remained in place.
Option D ("Real estate exposure in Berlin") → Incorrect because Northern Rock's problem was funding liquidity, not real estate losses.
PRMIA Risk Reference Used:
PRMIA Liquidity Risk Management Framework - Describes how liquidity shocks impact banks like Northern Rock.
Basel III Liquidity Coverage Ratio (LCR) Standards - Created after Northern Rock to prevent similar liquidity crises.
Final Conclusion:
The collapse of the inter-bank and commercial paper markets was the key low-probability-high-impact event that led to Northern Rock's failure, making Option C the correct answer.


NEW QUESTION # 13
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 improve the quality of scenario analysis and risk assessments.
  • D. Increase understanding of root causes, focus attention on remediation, and ascertain responsibility for the loss event.

Answer: C

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 # 14
In Operational Resilience, which of the following is not an important measure of whether a Business Service can be considered Critical?

  • A. Whether a disruption to the provision of the service could harm market integrity.
  • B. Whether a disruption to the provision of the service could exceed risk appetite.
  • C. Whether a disruption to the provision of the service could cause material customer detriment.
  • D. Whether a disruption to the provision of the service could threaten a firm's viability.

Answer: B

Explanation:
Step 1: Definition of a Critical Business Service in Operational Resilience A Critical Business Service is one whose failure could result in severe harm to customers, financial markets, or the firm's viability.
Regulators (e.g., Bank of England, Basel Committee, PRMIA) define three primary factors for identifying critical services:
Customer impact
Market integrity impact
Firm viability impact
Step 2: Why Option C Is Incorrect
Risk appetite is an internal business decision, not an external measure of criticality.
A service can be critical even if its disruption stays within risk appetite.
Criticality is based on external impacts, not just internal risk limits.
Step 3: Why the Other Options Are Correct
Option A ("Material customer detriment") → Correct as customer harm defines critical services.
Option B ("Harm to market integrity") → Correct as market stability is a regulatory priority.
Option D ("Threaten firm viability") → Correct as critical services often determine business survival.
PRMIA Risk Reference Used:
PRMIA Operational Resilience Framework - Defines criteria for critical business services.
Basel Committee Operational Risk Guidelines - Highlights customer, market, and firm viability as resilience factors.
Final Conclusion:
Risk appetite is an internal benchmark, not a measure of critical service designation, making Option C the correct answer.


NEW QUESTION # 15
Process mapping is:

  • A. A useful tool for understanding process intensive activities.
  • B. A helpful tool for understanding where control gaps may exist.
  • C. All of the above.
  • D. A good visualization tool for understanding where hand-offs and hand-ins may occur.

Answer: C

Explanation:
Process Mapping is a risk management tool used to visualize workflows, identify inefficiencies, and detect control gaps. PRMIA defines process mapping as an essential operational risk management tool.
Step 1: Understanding Process Mapping
Helps analyze complex, process-intensive activities (Option A).
Reveals control weaknesses that could lead to operational risks (Option B).
Improves hand-offs and collaboration between teams (Option C).
Step 2: Why "All of the Above" is Correct
Process mapping serves multiple risk management purposes, making all listed options valid.
PRMIA Risk Reference Used:
PRMIA Operational Risk Management Guidelines - Recommends process mapping to identify inefficiencies and control gaps.
PRMIA Risk Governance Framework - Encourages visualization tools for process improvement.
Final Conclusion:
Process mapping improves risk awareness, identifies control gaps, and enhances operational workflows, making Option D the correct answer.


NEW QUESTION # 16
How can a chief risk officer encourage the governing body and executive management team to create a stronger risk culture?

  • A. Having a vision of achievable but not excessive ambition.
  • B. Discourage personal accountability to avoid a blame culture.
  • C. Establish a set of objectives that the board and executive team must adhere to.
  • D. Balance rewarding success in profitability goals with punishment when there is a failure to achieve goals.

Answer: A

Explanation:
A Chief Risk Officer (CRO) plays a crucial role in shaping and strengthening the risk culture within an organization. PRMIA defines risk culture as the shared values, beliefs, knowledge, and understanding about risk that drive behaviors within an institution.
Setting a Clear Vision
The CRO should communicate a vision of risk management that aligns with organizational goals while ensuring that risk-taking remains within acceptable limits.
The vision should be achievable and realistic, rather than overly ambitious, which could incentivize reckless risk-taking.
Embedding Risk Awareness into Decision-Making
A strong risk culture ensures that risk considerations are embedded into business decision-making rather than treated as a separate compliance exercise.
This is supported by PRMIA's Enterprise Risk Management (ERM) Framework, which stresses integrating risk management into strategy and operations.
Avoiding a Blame Culture
A risk-aware organization promotes accountability without fear, enabling employees to report risks without retribution.
Option B (Discourage personal accountability to avoid a blame culture) is incorrect because personal accountability is essential for a healthy risk culture.
Avoiding a Strict, Prescriptive Approach
A set of rigid objectives that must be followed by the executive team (Option C) does not foster a dynamic, evolving risk culture.
Instead, risk culture should be flexible and adaptive to emerging risks.
Balancing Incentives and Consequences
While balancing rewards with penalties (Option D) is part of governance, a strong risk culture is not built solely through fear of punishment.
PRMIA emphasizes positive reinforcement, such as linking risk management behaviors to performance evaluations and incentives.
PRMIA Reference for Verification
PRMIA Risk Governance Framework - Discusses the role of leadership in shaping risk culture.
PRMIA Standards on Enterprise Risk Management (ERM) - Covers best practices for embedding risk culture within organizations.


NEW QUESTION # 17
......

Our products boost 3 versions and varied functions. The 3 versions include the PDF version, PC version, APP online version. You can use the version you like and which suits you most to learn our ORM Certificate - 2023 Update test practice dump. The 3 versions support different equipment and using method and boost their own merits and functions. For example, the PC version supports the computers with Window system and can stimulate the real exam. Our products also boost multiple functions which including the self-learning, self-evaluation, statistics report, timing and stimulation functions. Each function provides their own benefits to help the clients learn the 8020 Exam Questions efficiently. For instance, the self-learning and self-evaluation functions can help the clients check their results of learning the ORM Certificate - 2023 Update study question.

Exam 8020 Material: https://www.testpassking.com/8020-exam-testking-pass.html

Fast payment, PRMIA 8020 Exam Questions Answers In other words, without excellent quality, without high pass rate, You just need to spend one or two days to practice the 8020 valid dumps and remember the key points of 8020 valid test, getting 8020 certification will be a piece of cake for you, PRMIA 8020 Exam Questions Answers In this era, everything is on the rise.

Bar and pie charts tend to be graphically inefficient, Garr is a former corporate Reliable 8020 Exam Labs trainer for Sumitomo Electric, and once worked in Cupertino, California as the Manager for Worldwide User Group Relations at Apple, Inc.

Free PDF PRMIA - High Hit-Rate 8020 Exam Questions Answers

Fast payment, In other words, without excellent 8020 quality, without high pass rate, You just need to spend one or two days to practice the 8020 valid dumps and remember the key points of 8020 valid test, getting 8020 certification will be a piece of cake for you.

In this era, everything is on the rise, We have launched our 8020 practice test after consulting with experts who have years of experience in this field.

Report this page