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Updated: Aug 11, 2026
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| Certification Vendor: | Professional Risk Managers' International Association (PRMIA) |
| Exam Name: | PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition |
| Exam Number: | 8008 |
| Related Certifications: | PRM Certification - Exam I (Finance Theory, Financial Instruments, Financial Markets) PRM Certification - Exam II (Mathematical Foundations of Risk Management) PRM Certification - Exam IV (Case Studies; Governance, Best Practices and Ethics) |
| Exam Duration: | 120 minutes |
| Exam Price: | Vendor member / non-member pricing varies; exam authorisation included in PRM programme fee managed via PRMIA/Pearson VUE |
| Available Languages: | English |
| Real Exam Qty: | Approx. 60 (multiple choice format) |
| Passing Score: | 60% |
| Exam Format: | Multiple Choice Questions |
| Certificate Validity Period: | PRM certification validity requires passing both required exams within 2 years |
| Sample Questions: | PRMIA 8008 Sample Questions |
| Exam Way: | Computer-based testing via Pearson VUE at testing centres or online proctoring. |
| Pre Condition: | Must be enrolled in the PRM certification programme; meeting PRMIA experience/education prerequisites per PRM designation requirements. |
| Official Syllabus URL: | https://prmia.org/Public/Public/PRM/PRM_Exam_Preparation_Resources.aspx |
| Section | Objectives |
|---|---|
| Topic 1: Counterparty Risk | - Counterparty Exposure and Collateral Management - Pre-Settlement and Settlement Risk |
| Topic 2: Funds Transfer Pricing (FTP) | - FTP Framework and Methodologies - FTP Implementation and Governance |
| Topic 3: Asset-Liability Management (ALM) | - Liquidity and Funding Risk Management - Interest Rate Risk in the Banking Book |
| Topic 4: Operational Risk | - Operational Risk Identification and Assessment - Operational Risk Measurement and Controls |
| Topic 5: Market Risk | - Market Risk Models and VAR - Market Risk Measurement Techniques |
| Topic 6: Risk Management Frameworks | - Enterprise Risk Management Principles - Governance and Risk Culture |
| Topic 7: Credit Risk | - Credit Risk Mitigation and Management - Credit Risk Analysis and Measurement |
1. When modeling operational risk using separate distributions for loss frequency and loss severity, which of the following is true?
A) Loss severity and loss frequency are considered independent
B) Loss severity and loss frequency are modeled using the same units of measurement
C) Loss severity and loss frequency are modeled as conditional probabilities
D) Loss severity and loss frequency distributions are considered as a bivariate model with positive correlation
2. Which of the following represent the parameters that define a VaR estimate?
A) confidence level and the underlying stochastic process
B) confidence level, the holding period and expected volatility
C) confidence level and the holding period
D) trading position and distribution assumption
3. The unexpected loss for a credit portfolio at a given VaR estimate is defined as:
A) VaR - Expected Loss
B) Actual Loss - VaR
C) Actual Loss - Expected Loss
D) max(Actual Loss - Expected Loss, 0)
4. Which of the following statements is true:
I. Basel II requires banks to conduct stress testing in respect of their credit exposures in addition to stress testing for market risk exposures II. Basel II requires pooled probabilities of default (and not individual PDs for each exposure) to be used for credit risk capital calculations
A) I & II
B) Neither statement is true
C) II
D) I
5. Which of the following formulae describes Marginal VaR for a portfolio p, where V_i is the value of the i-th asset in the portfolio? (All other notation and symbols have their usual meaning.) A)
B)
C)
D)
All of the above
A) Option B
B) Option C
C) Option A
D) Option D
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |
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