Latest PRMIA 8020 Test Preparation & 8020 Study Center

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2Pass4sure assists people in better understanding, studying, and passing more difficult certification exams. We take pride in successfully servicing industry experts by always delivering safe and dependable exam preparation materials. You will need authentic PRMIA 8020 Exam Preparation material if you want to take the ORM Certificate - 2023 Update exam to expand your career opportunities.

The experts and professors of our company have designed the three different versions of the 8020 study materials, including the PDF version, the online version and the software version. Now we are going to introduce the online version for you. There are a lot of advantages about the online version of the 8020 Study Materials from our company. For instance, the online version can support any electronic equipment and it is not limited to all electronic equipment.

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Individuals who pass the ORM Certificate - 2023 Update (8020) certification exam demonstrate to their employers and clients that they have the knowledge and skills necessary to succeed in the industry. 2Pass4sure is aware that preparing with outdated ORM Certificate - 2023 Update (8020) study material results in a loss of time and money.

PRMIA 8020 Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	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 3	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 4	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 5	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 6	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.

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

NEW QUESTION # 48
Which of the following best describes the role of the compliance department?

A. The compliance department is responsible for implementing the first line's compliance risk management controls.
B. The compliance department is responsible for providing oversight over the first line's implementation of compliance risk management controls.
C. The compliance department is responsible for providing oversight over the auditor's implementation of compliance risk management controls.
D. The compliance department is responsible for providing oversight over the board's implementation of compliance risk management controls.

Answer: B

Explanation:
Three Lines of Defense Model
The compliance department functions as the second line of defense, ensuring oversight over the first line's compliance controls.
It does not directly implement controls but monitors and advises on compliance risk management.
Responsibilities of the Compliance Department
Ensures regulatory compliance with laws, policies, and industry standards.
Monitors and enforces risk management controls within business operations.
Provides advisory and training on compliance risks.
Why Answer D is Correct
The first line of defense (business operations) is responsible for executing compliance controls.
The compliance department (second line) provides oversight and governance to ensure compliance adherence.
Why Other Answers Are Incorrect
Option
Explanation:
A . The compliance department is responsible for implementing the first line's compliance risk management controls.
Incorrect - The first line (business units) implement compliance controls, while compliance oversees.
B . The compliance department is responsible for providing oversight over the auditor's implementation of compliance risk management controls.
Incorrect - Internal audit is part of the third line of defense, not directly overseen by compliance.
C . The compliance department is responsible for providing oversight over the board's implementation of compliance risk management controls.
Incorrect - The board provides high-level governance; compliance ensures business adherence to regulations.
PRMIA Reference for Verification
PRMIA Governance & Compliance Oversight Framework
Basel Committee's Guidelines on Compliance Risk Management

NEW QUESTION # 49
Which of the follow does the risk function typically have responsibility for?

A. Documenting its activities, typically by operating and then recording the daily operation of controls.
B. Putting in place the servers, firewalls and software to ensure cyber security.
C. Documenting its activities, typically by developing a Risk Management Manual and set of Risk Policies.
D. Creating a trial balance, balance sheet statement and cash flow statement.

Answer: C

Explanation:
Role of the Risk Function
The risk function is responsible for documenting, monitoring, and overseeing risk policies and frameworks.
It ensures the organization maintains structured risk governance, reporting, and compliance.
Key Responsibilities
Developing Risk Management Manuals to define risk appetite, risk frameworks, and risk governance structures.
Creating Risk Policies that align with regulatory standards and internal controls.
Why Answer B is Correct
The risk function primarily develops, implements, and maintains risk management frameworks, which include formal manuals and policies.
Why Other Answers Are Incorrect
Option
Explanation:
A . Documenting its activities, typically by operating and then recording the daily operation of controls.
Incorrect - The first line of defense (business units) handles daily operational controls, not the risk function.
C . Putting in place the servers, firewalls, and software to ensure cybersecurity.
Incorrect - Cybersecurity is an IT responsibility, while the risk function oversees cyber risk frameworks.
D . Creating a trial balance, balance sheet statement, and cash flow statement.
Incorrect - These are financial accounting responsibilities, not risk management duties.
PRMIA Reference for Verification
PRMIA Governance Framework for Risk Management
Basel Risk Management Principles

NEW QUESTION # 50
For the WorldCom case, what was one of the causes of the failure?

A. The lack of a CRO during the final IPO.
B. Risk models that did not reflect loosened underwriting standards of mortgage originators.
C. A rapid pace of acquisitions and poor integration of acquired companies.
D. Unauthorized trading in derivatives.

Answer: C

Explanation:
Step 1: Understanding the WorldCom Case
WorldCom was one of the largest U.S. telecom companies before its collapse in 2002 due to fraudulent accounting practices and poor risk management.
The company expanded aggressively through acquisitions but failed to integrate them properly, leading to financial mismanagement and accounting fraud.
Step 2: Why Option C is Correct
WorldCom acquired over 60 companies in a short period without proper integration.
This masked financial problems and led to $11 billion in fraudulent accounting adjustments.
PRMIA and risk management frameworks stress that poor integration after rapid acquisitions increases operational and financial risks.
Step 3: Why the Other Options Are Incorrect
Option A ("Risk models and mortgage underwriting") → Incorrect because this describes the 2008 financial crisis, not WorldCom.
Option B ("Lack of a CRO during IPO") → Incorrect because WorldCom was well-established before its fraud-CRO absence was not the main issue.
Option D ("Unauthorized derivatives trading") → Incorrect because WorldCom's failure was due to fraudulent accounting, not derivatives.
PRMIA Risk Reference Used:
PRMIA Corporate Governance Guidelines - Discusses risks of poor post-merger integration.
SEC Investigation on WorldCom (2002) - Identified fraudulent accounting due to failed acquisitions.

NEW QUESTION # 51
In relation to financial crime. OFAC is a definition for which organization?

A. Office for Asset Control.
B. Office of Financial Asset Control.
C. Office of Foreign Asset Control.
D. Office of Foreigner and other Control.

Answer: C

Explanation:
Step 1: Understanding OFAC
OFAC (Office of Foreign Assets Control) is a U.S. Treasury Department agency responsible for enforcing economic and trade sanctions based on U.S. foreign policy and national security goals.
It prevents financial crime by restricting transactions with sanctioned individuals, entities, and countries.
Step 2: Role of OFAC in Financial Crime Prevention
OFAC administers sanctions to prevent money laundering, terrorism financing, and other illicit activities.
Financial institutions must comply with OFAC regulations to avoid heavy fines and reputational damage.
PRMIA's Financial Crime Risk Guidelines emphasize the importance of OFAC compliance in risk management.
Step 3: Why the Other Options Are Incorrect
Option A ("Office of Financial Asset Control") - Incorrect wording; OFAC deals with foreign assets, not just financial assets.
Option B ("Office of Foreigner and Other Control") - OFAC does not regulate foreigners broadly; it targets specific foreign assets and transactions.
Option C ("Office for Asset Control") - Missing "Foreign", which is critical to OFAC's function.
PRMIA Risk Reference Used:
PRMIA Financial Crime Risk Management Guidelines - Emphasizes regulatory compliance with OFAC.
PRMIA Compliance and Sanctions Risk Standards - Stresses the role of OFAC in preventing illicit financial activities.
Final Conclusion:
OFAC stands for the Office of Foreign Assets Control, making Option D the correct answer.

NEW QUESTION # 52
An example of Credit Risk events with an Operational Risk component included?

A. Rogue Trading.
B. Ponzi Schemes.
C. Ponzi Schemes & Rogue Trading.
D. Failure in loan approval process leading to erroneously approved loans.

Answer: C

Explanation:
Step 1: Understanding Credit Risk with an Operational Risk Component
Credit Risk: Risk of loss due to borrower default.
Operational Risk: Risk of loss due to failed internal processes, fraud, or misconduct.
Step 2: Why Option D is Correct
Ponzi Schemes: Fraudulent investment scams disguise credit risk as legitimate lending but collapse when new funds dry up.
Rogue Trading: Traders take unauthorized risks that can lead to credit defaults or massive financial losses.
Step 3: Why the Other Options Are Incorrect
Option A ("Failure in loan approval process") → This is an Operational Risk issue, but does not always create Credit Risk.
Option B ("Ponzi Schemes") → Partially correct, but does not include Rogue Trading, which is also a credit risk-related operational failure.
Option C ("Rogue Trading") → Partially correct, but does not include Ponzi Schemes, which are another key example.
PRMIA Risk Reference Used:
PRMIA Operational Risk Framework - Highlights fraud-based Credit Risk events.
Basel II/III Operational Risk Guidelines - Discusses trading misconduct and credit risk misrepresentation.
Final Conclusion:
Both Ponzi Schemes and Rogue Trading involve credit risk failures caused by operational misconduct, making Option D the correct answer.

NEW QUESTION # 53
......

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LATEST PRMIA 8020 TEST PREPARATION & 8020 STUDY CENTER

Latest PRMIA 8020 Test Preparation & 8020 Study Center