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PRMIA 8011 Exam Overview:
| Certification Vendor: | PRMIA (Professional Risk Managers' International Association) |
| Exam Name: | Credit and Counterparty Risk Manager (CCRM) Certificate Exam |
| Exam Number: | 8011 |
| Available Languages: | English |
| Exam Format: | Multiple Choice Questions |
| Passing Score: | 60% |
| Related Certifications: | PRM Designation |
| Real Exam Qty: | 60 |
| Certificate Validity Period: | Not formally time-limited certificate validity stated; PRMIA certificate program applies |
| Exam Price: | $549–$599 (depending on membership status) |
| Exam Duration: | 120 minutes |
| Recommended Training: | PRMIA CCRM Candidate Guidebook PRMIA CCRM eCoach Course |
| Exam Registration: | Pearson VUE PRMIA Exam Scheduling PRMIA CCRM Certification Registration |
| Sample Questions: | PRMIA 8011 Sample Questions |
| Exam Way: | Computer-based exam delivered via Pearson VUE (test center or remote proctoring) |
| Pre Condition: | No strict formal prerequisite; recommended familiarity with basic finance, derivatives, and credit risk concepts |
| Official Syllabus URL: | https://prmia.org |
PRMIA 8011 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Classic Credit Risk | - Credit products and lifecycle
|
| Topic 2: SA-CCR and Regulatory Frameworks | - Standardized Approach for Counterparty Credit Risk |
| Topic 3: Credit Portfolio Management | - Risk concentration and diversification - Portfolio credit risk measurement |
| Topic 4: Credit Derivatives and Securitization | - Credit derivatives instruments - Securitization structures and process |
| Topic 5: Counterparty Risk | - Definition and sources of counterparty risk - Mitigation techniques (netting, collateral) |
| Topic 6: Modern Credit Risk Modeling | - PD/LGD modeling frameworks - Credit VaR and loss distribution simulation |
| Topic 7: CVA and DVA | - Valuation adjustments - Measurement and interpretation |
PRMIA Credit and Counterparty Manager (CCRM) Certificate Sample Questions:
1. Under the internal ratings based approach for risk weighted assets, for which of the following parameters must each institution make internal estimates (as opposed to relying upon values determined by a national supervisor):
A) Exposure at default
B) Effective maturity
C) Probability of default
D) Loss given default
2. For a given mean, which distribution would you prefer for frequency modeling where operational risk events are considered dependent, or in other words are seen as clustering together (as opposed to being independent)?
A) Poisson
B) Binomial
C) Gamma
D) Negative binomial
3. The diversification effect is responsible for:
A) the sub-additivity property of market risk VaR assessments
B) the super-additivity property of market risk VaR assessments
C) total VaR numbers being greater than the sum of the individual VaRs for underlying portfolios
D) VaR being applicable only to short term horizons
4. Which of the following statements is true in relation to the Supervisory Capital Assessment Program (SCAP):
I. The SCAP is an annual exercise conducted by the Treasury Department to determine the health of key financial institutions in the US economy II. The SCAP was essentially a stress test where the stress scenarios were specified by the regulators III. Capital buffers calculated under the SCAP represented the amount of capital that the institutions covered by SCAP held in excess of Basel II requirements IV. The SCAP focused on both total Tier 1 capital as well as Tier 1 common capital
A) II and IV
B) I and III
C) I and III
D) I, II and IV
5. Financial institutions need to take volatility clustering into account:
I. To avoid taking on an undesirable level of risk
II. To know the right level of capital they need to hold
III. To meet regulatory requirements
IV. To account for mean reversion in returns
A) I, II and IV
B) II, III and IV
C) I & II
D) I, II and III
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |
By Hale
