8020 TEST PASS4SURE | 8020 RELIABLE EXAM REVIEW

8020 Test Pass4sure | 8020 Reliable Exam Review

8020 Test Pass4sure | 8020 Reliable Exam Review

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Tags: 8020 Test Pass4sure, 8020 Reliable Exam Review, 8020 Latest Study Materials, Latest 8020 Exam Dumps, Free 8020 Test Questions

Knowledge is defined as intangible asset that can offer valuable reward in future, so never give up on it and our 8020 exam preparation can offer enough knowledge to cope with the exam effectively. To satisfy the needs of exam candidates, our experts wrote our 8020 practice materials with perfect arrangement and scientific compilation of messages, so you do not need to study other 8020 training questions to find the perfect one anymore.

PRMIA 8020 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Risk Management Framework: This section of the exam measures the skills of Risk Managers and covers the development and implementation of structured approaches for risk identification, evaluation, and mitigation. It includes industry-standard frameworks that guide risk strategy and decision-making. A key skill measured is establishing a risk management framework for organizations.
Topic 2
  • Insurance Mitigation: This section of the exam measures the skills of Insurance Risk Managers and covers strategies for transferring risk through insurance and other financial instruments. It focuses on risk transfer mechanisms, policy structuring, and claims management. A key skill measured is assessing risk transfer options through insurance.
Topic 3
  • Risk Governance: This section of the exam measures the skills of Compliance Officers and covers the policies, structures, and processes that define how organizations oversee risk. It explores regulatory compliance, ethical considerations, and corporate governance frameworks to ensure accountability. A key skill measured is applying governance frameworks to organizational risk policies.
Topic 4
  • Risk Assessment: This section of the exam measures the skills of Financial Risk Analysts and covers methodologies for evaluating risks in different domains, including qualitative and quantitative approaches. It focuses on assessing vulnerabilities, threats, and potential impacts on business operations. A key skill measured is conducting risk impact analysis for financial threats.
Topic 5
  • Risk Information: This section of the exam measures the skills of Risk Managers and covers the collection, analysis, and communication of risk-related data. It highlights the role of data-driven decision-making in mitigating uncertainties and ensuring compliance. A key skill measured is interpreting risk data for informed decision-making.
Topic 6
  • Case Studies: This section of the exam measures the skills of Business Risk Consultants and covers real-world applications of risk management concepts. It examines case studies on risk governance, assessment, and mitigation strategies across different industries. A key skill measured is analyzing historical risk events for strategic insights.
Topic 7
  • Introduction: This section of the exam measures the skills of Risk Analysts and covers fundamental concepts of risk governance, management, and assessment. It introduces key principles, regulatory frameworks, and industry best practices for identifying and addressing risks. A key skill measured is understanding the foundational principles of risk management.

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PRMIA 8020 Reliable Exam Review & 8020 Latest Study Materials

All the Actual4Dumps PRMIA 8020 practice questions are real and based on actual ORM Certificate - 2023 Update (8020) exam topics. The web-based ORM Certificate - 2023 Update (8020) practice test is compatible with all operating systems like Mac, IOS, Android, and Windows. Because of its browser-based PRMIA 8020 Practice Exam, it requires no installation to proceed further. Similarly, Chrome, IE, Firefox, Opera, Safari, and all the major browsers support the ORM Certificate - 2023 Update (8020) practice test.

PRMIA ORM Certificate - 2023 Update Sample Questions (Q48-Q53):

NEW QUESTION # 48
What are the objectives of conducting an internal loss investigation?

  • A. Increase understanding of root causes, focus attention on who caused the issue, and improve the quality of scenario analysis and risk assessments.
  • B. Increase understanding of root causes, focus attention on remediation, and ascertain responsibility for the loss event.
  • C. Increase understanding of root causes, focus attention on remediation, and improve the quality of scenario analysis and risk assessments.
  • D. This is determined on a case by case basis by the HR team.

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 # 49
For the National Australia Bank - FX Options case study, large and unusual transaction activity was a concern for what reason?

  • A. Complex structured transactions aided in the smoothing of losses.
  • B. Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.
  • C. Deep-in-the-money options and other complex structured transactions aided in the smoothing of profits and losses.
  • D. Deep-in-the-money options aided in the smoothing of losses.

Answer: C

Explanation:
The National Australia Bank (NAB) FX Options Case Study is a well-known example of operational risk, fraud, and governance failure.
What Happened?
Traders engaged in unauthorized foreign exchange (FX) options trading, using deep-in-the-money options and other complex instruments.
They manipulated profits and losses to smooth earnings and mislead risk managers and auditors.
Why Answer C is Correct
The traders smoothed both profits and losses to avoid detection and ensure continued trading bonuses.
This aligns with PRMIA's Operational Risk Management Guidelines, which highlight that hidden trading losses and smoothing techniques increase financial crime risk.
Why Other Answers Are Incorrect
Option
Explanation:
A . Complex structured transactions aided in the smoothing of losses.
Incorrect - Smoothing occurred with both profits and losses, not just losses.
B . Deep-in-the-money options and other complex structured transactions aided in the smoothing of losses.
Incorrect - Profits were also manipulated, making this answer incomplete.
D . Deep-in-the-money options aided in the smoothing of losses.
Incorrect - This focuses only on deep-in-the-money options and ignores other structured transactions involved in the fraud.
PRMIA Reference for Verification
PRMIA Fraud and Risk Management Case Studies
Basel Principles on Market Risk and Internal Control Failures


NEW QUESTION # 50
The DORA act's full name is which of the following?

  • A. Domain for Operational Risk Act.
  • B. Digital Operational Risk Act.
  • C. Daily Operational Resilience Act.
  • D. Digital Operational Resilience Act.

Answer: D

Explanation:
Definition of DORA
The Digital Operational Resilience Act (DORA) is a regulation by the European Union (EU) aimed at strengthening the digital resilience of financial institutions.
It establishes a regulatory framework for managing information and communication technology (ICT) risks in the financial sector.
Key Objectives of DORA
Ensures that financial institutions can withstand, respond to, and recover from cyber threats and ICT-related disruptions.
Introduces standards for risk management, incident reporting, and third-party ICT risk oversight.
Why Other Answers Are Incorrect
Option
Explanation:
A . Domain for Operational Risk Act.
Incorrect - No such regulation exists under this name.
B . Digital Operational Risk Act.
Incorrect - The official name is Digital Operational Resilience Act (DORA).
C . Daily Operational Resilience Act.
Incorrect - DORA is not focused on daily operations but rather long-term digital resilience.
PRMIA Reference for Verification
PRMIA Risk Governance & Digital Resilience Standards
European Commission's Official DORA Regulation


NEW QUESTION # 51
Managing financial crime is a part of risk and compliance for many firms. Which of the following is a useful control to help reduce this risk?

  • A. Having the business be a cash only business and not report any transactions.
  • B. Development of scenarios and red flags that are used to monitor transactions and identify suspicious customers and activities.
  • C. Local regulations that allow a bank to not report transactions by family members of the board.
  • D. The requirements to trace all transactions when they are entered into spreadsheets.

Answer: B

Explanation:
Financial Crime Risk Management
Managing financial crime requires implementing controls, monitoring, and reporting systems to detect and prevent illegal activities.
Developing red flags and monitoring scenarios allows firms to detect suspicious transactions related to money laundering, fraud, and terrorist financing.
Why Answer C is Correct
PRMIA emphasizes that effective risk management requires proactive monitoring of transactions using red flags, transaction patterns, and anomaly detection systems.
This is aligned with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulatory requirements.
Why Other Answers Are Incorrect
Option
Explanation:
A . Having the business be a cash-only business and not report any transactions.
Incorrect - Cash-only businesses with no reporting are high-risk for financial crime.
B . The requirements to trace all transactions when they are entered into spreadsheets.
Incorrect - While transaction tracing is important, spreadsheets alone are not an effective control mechanism for financial crime.
D . Local regulations that allow a bank to not report transactions by family members of the board.
Incorrect - This would violate AML and financial crime regulations, increasing corruption risk.
PRMIA Reference for Verification
PRMIA Financial Crime and AML Risk Guidelines
Basel Committee on Financial Crime and Money Laundering


NEW QUESTION # 52
Under the previous Basel II approach, which was not an approach for operational risk?

  • A. Advanced Measurement Approach (AMA).
  • B. The Standardized Approach (TSA).
  • C. Alternative Measurement Approach (AMA).
  • D. Basic Indicator Approach (BIA).

Answer: C

Explanation:
Overview of Basel II Approaches for Operational Risk
Basel II introduced three main approaches to calculating capital requirements for operational risk:
Basic Indicator Approach (BIA)
The Standardized Approach (TSA)
Advanced Measurement Approach (AMA)
Why Answer D is Correct
Alternative Measurement Approach (AMA) is not a recognized Basel II approach.
The correct term under Basel II was Advanced Measurement Approach (AMA).
Why Other Answers Are Incorrect
Option
Explanation:
A . Basic Indicator Approach (BIA).
Correct - A simple approach where capital is set as a fixed percentage of gross income.
B . The Standardized Approach (TSA).
Correct - Categorizes operational risk into business lines, each with assigned risk factors.
C . Advanced Measurement Approach (AMA).
Correct - Uses internal models to calculate capital requirements based on loss data, scenario analysis, and risk controls.
PRMIA Reference for Verification
Basel II Framework for Operational Risk (2004)
PRMIA Risk Management Guidelines


NEW QUESTION # 53
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