PDF Version DemoPRMIA Operational Risk Manager (ORM) Sample Questions:
1. When fitting a distribution in excess of a threshold as part of the body-tail distribution method described by the equation below, how is the parameter 'p' calculated.
Here, F(x) is the severity distribution. F(Tail) and F(Body) are the parametric distributions selected for the tail and the body, and T is the threshold in excess of which the tail is considered to begin.
A) If there are Nobservations, of which K are up to T, then p = k/N
B) If there are K observations up to the tail threshold, then p = k*n
C) p is a function of the reporting threshold and determined by the log-likelihood functional
D) p is a parameter estimated using either the sum of least squares or maximum likelihood estimation
2. Conditional default probabilities modeled under CreditPortfolio view use a:
A) Power function
B) Altman's z-score
C) Probit function
D) Logit function
3. Which of the following are valid approaches to calculating potential future exposure (PFE) forcounterparty risk:
I. Add a percentage of the notional to the mark-to-market value
II. Monte Carlo simulation
III. Maximum Likelihood Estimation
IV. Parametric Estimation
A) I and II
B) I, III and IV
C) III and IV
D) All of the able
4. Which of the following statements is true
I. If no loss data is available, good quality scenarios can be used to model operational risk II. Scenario data can be mixed with observed loss data for modeling severity and frequency estimates III. Severity estimates should not be created by fitting models to scenario generated loss data points alone IV. Scenario assessments should only be used as modifiers to ILD or ELD severity models.
A) I and II
B) I
C) All statements are true
D) III and IV
5. Which of the following credit risk models relies upon theanalysis of credit rating migrations to assess credit risk?
A) The contingent claims approach
B) The actuarial approach
C) The CreditMetrics approach
D) KMV's EDF based approach
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |
We are confident about the products and aim to help you pass with ease. In case of failure, we will provide a no hassle full money back guarantee for the purchasing fee.
969 Customer Reviews
Quality and ValueITbraindumps Practice Exams are written to the highest standards of technical accuracy, using only certified subject matter experts and published authors for development - no all study materials.
Tested and ApprovedWe are committed to the process of vendor and third party approvals. We believe professionals and executives alike deserve the confidence of quality coverage these authorizations provide.
Easy to PassIf you prepare for the exams using our ITbraindumps testing engine, It is easy to succeed for all certifications in the first attempt. You don't have to deal with all dumps or any free torrent / rapidshare all stuff.
Try Before BuyITbraindumps offers free demo of each product. You can check out the interface, question quality and usability of our practice exams before you decide to buy.